A class action lawsuit against Arm Financial Group, Inc. formerly (NYSE:ARM), currently (OTC:ARMGA) and certain individuals associated with the Company was commenced in the United States District Court for the Western District of Kentucky on behalf of purchasers of ARM shares. The Class Period for this litigation is between October 27, 1998 and August 3, 1999.
The lawsuit charges ARM and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that defendants issued a series of materially false and misleading statements regarding the Company's financial condition and results of operations. These false and misleading statements caused the price of ARM's stock to be artificially inflated. Indeed, following the disclosure of ARM's true financial condition the stock price has collapsed to as low as $0.16 and no longer trades on the New York Stock Exchange.
This action seeks to recover damages on behalf of defrauded investors who purchased ARM securities while ARM's true financial condition was concealed from public investors.

Update

The Court has approved notice of the class action and The Garden City Group as claims administrator. If you purchased Arm Financial Group stock between February 10, 1998 and August 3, 1999, and don't receive a notice by mail, notices can be downloaded from www.gardencitygroup.com. Requests for exclusion must be postmarked no later than June 24, 2005. If you are a member of the class and do not timely submit a request for exclusion, you will be bound by the results of the action. Proof of Claim forms must be submitted no later than August 15, 2005. Forms received after this date will be processed but does not guarantee acceptance by the Claims Administrator.