Stockholders v Durus Capital Management, LLC, and Aksys, Ltd.
Durus Life Sciences Master Fund Secretly Held Aksys Shares
Several class actions have been filed against hedge fund operator Durus Capital Management, LLC, Durus Life Sciences Master Fund, Ltd., Scott Sacane, and Aksys, Ltd., by stockholders who sold short shares of Aksys, Ltd., (Nasdaq:AKSY) between January 1, 2003, to July 24, 2003. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially deflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.
Durus Life Sciences Master Fund is a hedge fund which, during the applicable period, acquired approximately 77% of the issued and outstanding shares of the common stock of Aksys, allegedly without filing the requisite SEC forms or making any public disclosures of its ownership level of Aksys stock. The lawsuit alleges that when Durus did announce its ownership of a majority of outstanding shares of Aksys, the revelation caused the stock to increase in price. For that reason, the lawsuit alleges that anyone who sold their Aksys stock short during the period would not have done so had they known about Durus' ownership.
If you sold securities issued by Aksys during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by September 20, 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 you in this action, or you may choose to do nothing, and remain in the class as a silent member.
