Penn Treaty American Corporation Misled Investors Says Class Action Lawsuit Filed by Berger & Montague, P.C.

Apr 27, 2001, 01:00 ET from Berger & Montague, P.C.

    PHILADELPHIA, April 27 /PRNewswire/ -- The law firm of Berger & Montague,
 P.C. (http://www.investorprotect.com), filed a class action complaint in the
 United States District Court for the Eastern District of Pennsylvania on
 behalf of all persons or entities who purchased Penn Treaty American
 Corporation ("Penn Treaty") (NYSE:   PTA) securities during the period from
 November 7, 2000 through March 29, 2001, inclusive.
     Penn Treaty underwrites, markets and sells individual accident and health
 insurance products.  The Complaint asserts that Penn Treaty defrauded its
 investors by reporting during the Class Period that the Company was
 experiencing substantial growth that would not affect its fiscal well-being.
 In fact, Penn Treaty did not disclose during the Class Period that its
 reserves were well under the amount required by regulators, causing it to face
 possible liquidation.  When the Company announced on March 30, 2001 that its
 ability to remain solvent was at risk, the price of Penn Treaty stock dropped
 42% in one day.
     The Complaint charges Penn Treaty and its senior officers with violations
 of sections 10 and 20(a) of the Securities and Exchange Act of 1934 for
 materially false and misleading statements and filings with the SEC.
     If you purchased Penn Treaty securities during the period from November 7,
 2000 through March 29, 2001, inclusive, you may, no later than June 18, 2001,
 move to be appointed lead plaintiff.  A lead plaintiff is a representative
 party that acts on behalf of other class members in directing the litigation.
 In order to be appointed lead plaintiff, the Court must determine that the
 class member's claim is typical of the claims of other class members, and that
 the class member will adequately represent the class.  Under certain
 circumstances, one or more class members may together serve as "lead
 plaintiff."  Your ability to share in any recovery, is not, however, affected
 by the decision whether or not to serve as a lead plaintiff.
     The law firm of Berger & Montague, P.C. has over 50 attorneys, all of whom
 represent plaintiffs in complex litigation.  The Berger firm has extensive
 experience representing plaintiffs in class action securities litigation and
 has played lead roles in major cases over the past 25 years which have
 resulted in recoveries of several billion dollars to investors.  The firm is
 currently representing investors as lead counsel in actions against Rite Aid,
 Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office
 Solutions, Inc.  The standing of Berger & Montague, P.C. in successfully
 conducting major securities and antitrust litigation has been recognized by
 numerous courts.  For example:
 
     "Class counsel did a remarkable job in representing the class interests."
 In Re: IKON Offices Solutions Securities Litigation. Civil Action No. 98-
 4286(E.D.Pa.) (partial settlement for $111 million approved May, 2000).
     "...[Y]ou have acted the way lawyers at their best ought to act.  And I
 have had a lot of cases...in 15 years now as a judge and I cannot recall a
 significant case where I felt people were better represented than they are
 here... I would say this has been the best representation that I have seen."
 In Re Waste Management, Inc. Securities Litigation, Civil Action No. 97-C 7709
 (N.D. Ill.) (settled in 1999 for $220 million).
 
     If you purchased Penn Treaty securities, or have any questions concerning
 this notice or your rights with respect to this matter, you may contact:
 
      Sherrie R. Savett, Esquire
      Karen S. Orman, Esquire
      Kimberly A. Walker, Investor Relations Manager
      Berger & Montague, P.C.
      1622 Locust Street
      Philadelphia, PA 19103
      Phone: 888-891-2289 or 215-875-3000
      Fax: 215-875-5715
      Website:   http://www.investorprotect.com
      e-mail: InvestorProtect@bm.net
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X58124541
 
 

SOURCE Berger & Montague, P.C.
    PHILADELPHIA, April 27 /PRNewswire/ -- The law firm of Berger & Montague,
 P.C. (http://www.investorprotect.com), filed a class action complaint in the
 United States District Court for the Eastern District of Pennsylvania on
 behalf of all persons or entities who purchased Penn Treaty American
 Corporation ("Penn Treaty") (NYSE:   PTA) securities during the period from
 November 7, 2000 through March 29, 2001, inclusive.
     Penn Treaty underwrites, markets and sells individual accident and health
 insurance products.  The Complaint asserts that Penn Treaty defrauded its
 investors by reporting during the Class Period that the Company was
 experiencing substantial growth that would not affect its fiscal well-being.
 In fact, Penn Treaty did not disclose during the Class Period that its
 reserves were well under the amount required by regulators, causing it to face
 possible liquidation.  When the Company announced on March 30, 2001 that its
 ability to remain solvent was at risk, the price of Penn Treaty stock dropped
 42% in one day.
     The Complaint charges Penn Treaty and its senior officers with violations
 of sections 10 and 20(a) of the Securities and Exchange Act of 1934 for
 materially false and misleading statements and filings with the SEC.
     If you purchased Penn Treaty securities during the period from November 7,
 2000 through March 29, 2001, inclusive, you may, no later than June 18, 2001,
 move to be appointed lead plaintiff.  A lead plaintiff is a representative
 party that acts on behalf of other class members in directing the litigation.
 In order to be appointed lead plaintiff, the Court must determine that the
 class member's claim is typical of the claims of other class members, and that
 the class member will adequately represent the class.  Under certain
 circumstances, one or more class members may together serve as "lead
 plaintiff."  Your ability to share in any recovery, is not, however, affected
 by the decision whether or not to serve as a lead plaintiff.
     The law firm of Berger & Montague, P.C. has over 50 attorneys, all of whom
 represent plaintiffs in complex litigation.  The Berger firm has extensive
 experience representing plaintiffs in class action securities litigation and
 has played lead roles in major cases over the past 25 years which have
 resulted in recoveries of several billion dollars to investors.  The firm is
 currently representing investors as lead counsel in actions against Rite Aid,
 Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office
 Solutions, Inc.  The standing of Berger & Montague, P.C. in successfully
 conducting major securities and antitrust litigation has been recognized by
 numerous courts.  For example:
 
     "Class counsel did a remarkable job in representing the class interests."
 In Re: IKON Offices Solutions Securities Litigation. Civil Action No. 98-
 4286(E.D.Pa.) (partial settlement for $111 million approved May, 2000).
     "...[Y]ou have acted the way lawyers at their best ought to act.  And I
 have had a lot of cases...in 15 years now as a judge and I cannot recall a
 significant case where I felt people were better represented than they are
 here... I would say this has been the best representation that I have seen."
 In Re Waste Management, Inc. Securities Litigation, Civil Action No. 97-C 7709
 (N.D. Ill.) (settled in 1999 for $220 million).
 
     If you purchased Penn Treaty securities, or have any questions concerning
 this notice or your rights with respect to this matter, you may contact:
 
      Sherrie R. Savett, Esquire
      Karen S. Orman, Esquire
      Kimberly A. Walker, Investor Relations Manager
      Berger & Montague, P.C.
      1622 Locust Street
      Philadelphia, PA 19103
      Phone: 888-891-2289 or 215-875-3000
      Fax: 215-875-5715
      Website:   http://www.investorprotect.com
      e-mail: InvestorProtect@bm.net
 
                      MAKE YOUR OPINION COUNT - Click Here
                http://tbutton.prnewswire.com/prn/11690X58124541
 
 SOURCE  Berger & Montague, P.C.