The suits specifically seek unspecified damages, expected to be in the millions, for shareholders owning Eagle stock from April 18, 2001 through Feb. 14, 2002.
Trading on the Over-the-Counter Bulletin Board, Eagle Stock dropped during the period from $12.30 per share to $1.44, according to the newest lawsuit filed April 11 by West Palm Beach, FL-based Berman DeValerio Pease Tabacco Burt & Pucillo.
The stock was trading April 11 at $3.50 per share on volume of 45,500. There are 6.54 million shares outstanding. Eagle Building's market capitalization is $22.9 million.
In the newest suit filed in U.S. District Court, West Palm Beach, Dr. Robert Gluck is listed as the lead plaintiff. Anthony M. D'Amato, Eagle's former chairman/CEO is named as a defendant along with the company.
Eagle has consented to the entry of a preliminary injunction against it by the SEC. In a previously prepared statement, Eagle says the company "recently discovered that Mr. D'Amato intentionally fabricated the company's earnings from operations in India for the years 2000 and 2001.
"Preliminary indications are that no earnings from such operations existed. In addition, it appears that certain press releases issued by EGBT in the fall of 2001 regarding post-Sept. 11 security measures marketed by EGBT may have been false and misleading."
Eagle's auditor and tax consultant, Salt Lake City-based Tanner+Co. has withdrawn its positive report on Eagle's Dec. 31, 2000 financial statements along with approvals it may have made on Eagle's quarterly financials in 2000 and 2001, Eagle says in its previous statement.
Eagle has retained the 750-lawyer, Houston-based Fulbright & Jaworski firm to fight the lawsuits.
Eagle also has named new directors following the Feb. 27 resignation of D'Amato and the resignation of directors Charles Gargano, Robert Kornahrens and Ralph Thomson.
Howard Ash and Bruce P. Mauldin are the new directors. Ash is chairman, Claridge Management and a former chief financial officer of Ives Motors Corp. and chief operating officer of BioCard Corp. Mauldin is president/CEO of Texas Airways Inc.
Besides the new West Palm Beach suit, other class-action lawsuits were filed in the past 30 days by Philadelphia-based Brian M. Felgoise PC; New York-based Weiss & Yourman, and Kaplan Fox & Kilsheimer LLP; and Fine & Hatfield PC of Evansville, IN.
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