A CLASS ACTION AGAINST DOW CHEMICAL REGARDING
ITS MERGER WITH UNION CARBIDE IS ANNOUNCED
May 3, 2000
The following was released today by the Law Offices of Curtis V. Trinko, LLP and Goodkind Labaton Rudoff & Sucharow LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of all persons who held the common stock of Dow Chemical (NYSE: DOW) since August 13, 1999.
The complaint alleges that Dow violated federal securities laws, including Section 13(d) of the Securities Exchange Act of 1934, in an SEC filing on August 13, 1999 that contained false statements and omissions concerning potential liabilities and dangers of business disruption to which Dow would be exposed upon its acquisition by merger of Union Carbide.
Specifically, the complaint alleges that Dow failed to disclose that Union Carbide is exposed to potential liabilities from its former pesticide plant in Bhopal, India that (i) released poisonous gas in 1984 that killed thousands and injured half a million people, and (ii) continues to cause environmental contamination in a densely populated region.
The complaint alleges that Dow failed to disclose that:
(i) Union Carbide is criminally charged in India for the Bhopal Disaster with culpable homicide and other charges, which expose it to potentially billions of dollars of liability;
(ii) Union Carbide failed to appear in Indian criminal courts, was proclaimed an absconder and its assets in India were attached;
(iii) Dow's Indian holdings will likewise be in danger of attachement by Indian courts;
(iv) Dow's plans to expand operations in India will, therefore, be jeopardized; and
(v) Union Carbide remains liable for damages from environmental contamination from its former Bhopal pesticide plant.
The complaint further alleges that Dow's failure to address these matters has caused: (i) Dow to understimate the liabilities it stands to assume pursuant to the merger, and (ii) that Dow made an excessive offer for Union Carbide.
If you would like to discuss this action or have any questions regarding this notice or your rights and interests with respect to these matters, you may contact the persons listed below.
If you are a member of the class of investors described above, you may, not later than sixty days from May 3, 2000, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
Contact: Curtis V. Trinko Law Offices of Curtis V. Trinko, LLP 16 West 46th Street, NY, NY phone (212) 490-9550
Kenneth F. McCallion H. Rajan Sharma Goodkind Labaton Rudoff & Sucharow, LLP 100 Park Avenue, NY, NY phone (212) 907-0700