Wolf Haldenstein Announces Filing Of Class Action Against Maxim Group Inc

Business Wire, May 20, 1999

NEW YORK--(BUSINESS WIRE)--May 20, 1999--

The following is an announcement by Wolf Haldenstein Adler Freeman & Herz LLP:

Wolf Haldenstein Adler Freeman & Herz LLP announces that it filed a class action lawsuit in the United States District Court for the Northern District of Atlanta on behalf of investors who bought Maxim Group Inc. (NYSE: MXG) ("Maxim" or the "Company") securities between September 1, 1998 and May 19, 1999 (the "Class Period").

The lawsuit charges Maxim and several of its top officers with violations of the securities laws and regulations of the United States. The complaint alleges that defendants issued a series of false and misleading statements concerning the Company's revenues during the 2nd, 3rd and 4th quarters of its 1999 fiscal year. The Company announced on May 19, 1999 that due to the incorrect statement of its revenues in the last three quarters of 1999 it would have to restate those results downwards. Upon the announcement of the restatement of its financial results the Company's stock price dropped approximately 15% on extraordinarily heavy trading volume.

The complaint further alleges that certain Company insiders took advantage of their knowledge of the inflation in the Company's stock price to sell significant portions of their own company holdings for proceeds of at least $25,000,000.

Plaintiff seeks to recover damages on behalf of all class members and is represented by the law firm of Wolf Haldenstein Adler Freeman & Herz LLP (www.whafh.com). The Wolf Haldenstein firm has a full service commercial practice consisting of more than 40 attorneys based in New York City and San Diego. The firm's litigation department has been recognized by courts throughout the country as highly experienced and skilled in complex litigation, particularly with respect to federal securities laws, class actions and shareholder litigation. The firm's qualifications have repeatedly received very favorable judicial recognition. The firm has achieved recoveries of over one billion dollars on behalf of investors and shareholders.

If you purchased Maxim securities during the Class Period, you have until July 19, 1999 to participate in the case and ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to discuss this action or have any questions, please contact Wolf Haldenstein Adler Freeman & Herz LLP at 270 Madison Avenue, New York, New York 10016, by telephone at (800) 575- 0735 (Michael Miske, Gregory Nespole, Esq., Fred Taylor Isquith, Esq. or Shane T. Rowley, Esq.), via e-mail at classmember@whafh.com or whafh@aol.com or visit our website at www.whafh.com

All e-mail correspondence should make reference to Maxim.