The lawsuit further alleges that Duncan-Williams failed to discharge properly its duties as underwriter of the bond issue in question. The suit alleges that Duncan-Williams' conduct violated Section 10(b) of the Securities Exchange Act and SEC Rule 10b-5, the Tennessee Securities Act, and the common law of Tennessee. The lawsuit seeks certification of a class consisting of individuals and entities that purchased Capstone bonds from Duncan-Williams.

Bonds are known as "fixed-income" securities because the amount of income the bond will generate each year is "fixed," or set, when the bond is sold. No matter what happens or who holds the bond, it will generate exactly the same amount of money. There are four basic kinds of bonds, all defined by who is selling the debt. The first are bonds sold by the U.S. government and government agencies. The second are bonds sold by corporations. The third type of bonds are those sold by state and local governments. The last type of bond investors might encounter are bonds sold by foreign governments, although these can be difficult for the individual investor to buy and sell outside of a mutual fund.

If you purchased Capstone bonds issued by Duncan-Williams during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by August 16, 2004. 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 your claim is typical of the claims of other class members, and that you will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiffs. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. You may retain any counsel of your choice to serve as you in this action, or you may choose to do nothing, and remain in the class as a silent member.