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Kohrman Jackson & Krantz P.L.L. Announces Magistrate Judge's Recommendation of Default Judgment Action Against PricewaterhouseCoopers LLP on Behalf of Purchasers of Telxon Corporation Securities in Pending Securities Fraud Class Action
On January 12, 2005, Zwerling, Schachter & Zwerling, LLP (“ZS&Z”), Class Counsel, and Kohrman Jackson & Krantz P.L.L. (“KJ&K”), Liaison Counsel, announce that on July 2, 2004, Magistrate Judge Patricia A. Hemann, of the United States District Court for the Northern District of Ohio, issued a Report and Recommendation that the court grant default judgment on liability in favor of Class Plaintiffs against PricewaterhouseCoopers LLP (“PwC”) in a securities fraud class action entitled Hayman, et ano. v. PricewaterhouseCoopers LLP (the “Hayman action”), and in favor of plaintiff in a related action, Telxon Corporation v. PricewaterhouseCoopers LLP. Magistrate Judge Hemann issued an amended Report and Recommendation on July 16, 2004. At PwC’s request, the Report and Recommendation was placed temporarily under seal. Judge Kathleen M. O’Malley, of the United States District Court for the Northern District of Ohio, restored the Report and Recommendation to the public docket by Order dated January 11, 2005.
In May 2004, Class Plaintiffs and Telxon Corporation (“Telxon”) filed motions for discovery sanctions against PwC, alleging that PwC engaged in various discovery violations throughout the course of the litigation. Magistrate Judge Hemann’s Report and Recommendation advises the district court to grant Class Plaintiffs’ motion and award default judgment on liability on behalf of the Class. The Report and Recommendation can be found on the Court’s website (www.ohnd.uscourts.gov) or on ZS&Z’s website, www.zsz.com. PwC has objected to the findings of the Report and Recommendation. Judge O’Malley heard oral argument on PwC’s objections during December 2004 and January 2005. Judge O’Malley will decide whether to adopt, modify or reject the Report and Recommendation.
The Hayman action, alleging that PwC violated the Securities Exchange Act of 1934, was filed in May 2001. Class Plaintiffs allege that PwC’s audits of Telxon Corporation were not in accordance with Generally Accepted Auditing Standards, and that PwC issued misleading audit opinions on Telxon’s financial statements. On August 26, 2002, the Court certified Class Plaintiffs’ claims against PwC on behalf of a class of purchasers of Telxon common stock for the period of June 29, 1998 through February 23, 1999.
ZS&Z concentrates in prosecuting class actions nationwide on behalf of investors. The firm currently plays a leading role in numerous major securities and complex commercial litigations pending in federal and state courts and has offices in New York City, Uniondale, New York, Seattle, Washington, and Boca Raton, Florida. The firm has been recognized by courts throughout the country as highly experienced and skilled in complex litigation, particularly with respect to federal securities class action litigation.
KJ&K is a Cleveland-based law firm representing individuals and companies throughout the United States. Founded in 1969, KJ&K is dedicated to providing clients with the resources and knowledge needed to solve their legal issues, including the most sophisticated business transactions and complex litigation.
For more information regarding this action, please contact Class Counsel or Liaison Counsel:
Jeffrey C. Zwerling, Esq.
Richard A. Speirs, Esq.
Zwerling, Schachter & Zwerling, LLP
41 Madison Avenue
New York, New York 10010
(212) 223-3900
e-mail: inquiry@zsz.com
or
Brett S. Krantz, Esq.
Kohrman Jackson & Krantz, PLL
1375 East Ninth Street, 20th Floor
Cleveland, OH 44114-1793
(216) 696-8700
e-mail: bk@kjk.com
Read more about the case in The Plain Dealer.
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