BALA CYNWYD, Pa., July 27, 2001 (PRIMEZONE) -- Schiffrin & Barroway, LLP announced today that it recently filed lawsuits against Robotic Vision Systems, Inc., ECI Telecom Ltd., Chronimed, Inc. and InfoSpace, Inc., for violations of the federal securities laws.
If you purchased the securities of any of the companies listed below during the respective class periods, you may be a member of the class and have until the date specified to move the court to become the lead plaintiff. For more information on a particular lawsuit and to view the complaint, you may visit our Website at www.sbclasslaw.com. To learn more about your rights and interests in these cases and your ability to potentially recoup your losses, please contact Schiffrin & Barroway directly at (888) 299-7706 (toll free) or (610) 667-7706, fax number (610) 667-7056 or by e-mail at info@sbclasslaw.com.
ROBOTIC VISION SYSTEMS, INC. (Nasdaq:ROBV) (Class Period: 01/27/00 - 05/15/01). The complaint charges Robotic Vision Systems, Inc. ("Robotic Vision") and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that on or about May 15, 2001, defendants announced that it would be delaying the filing of its form 10-A with the SEC for the second-quarter of 2001 because it was restating its financial results for the fiscal year ended December 31, 2000 and for the three month period ended December 31, 2000, to correct certain accounting issues related to the recognition of revenue at its Acuity CiMatrix division. In response to this shocking announcement, Robotic Vision shares tumbled almost 15%. The complaint was filed in the U.S. District Court for the District of Massachusetts. The lead plaintiff motion must be filed no later than August 6, 2001.
ECI TELECOM LTD. (Nasdaq:ECIL) (Class Period: 05/02/00 - 02/14/01). The complaint charges ECI Telecom Ltd. ("ECI") and certain of its officers and directors with issuing false and misleading statements concerning ECI's reported revenue for the first, second and third quarters of 2000. Specifically, the complaint alleges that on February 14, 2001, the Company announced that it expected to move $38 million in revenue from its 1999 financial statement to 2000, and $61 million from 2000 to 2001. The complaint was filed in the U.S. District Court for the Eastern District of Virginia. The lead plaintiff motion must be filed no later than August 11, 2001.
CHRONIMED, INC. (Nasdaq:CHMDE) (Class Period: 10/27/99 - 06/13/01) The complaint charges Chronimed, Inc. ("Chronimed") and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that Chronimed issued press releases announcing quarterly and yearly financial results, which were repeated in quarterly and yearly SEC filings. The publicly disseminated financial results were favorable, and included several quarters of supposedly record revenues. On June 14, 2001, Chronimed issued a press release announcing that it would be restating its financial results for fiscal 2000, and the first three quarters of fiscal 2001, due to accounting irregularities. According to the press release, StarScript, a subsidiary of Chronimed, had been overstating revenues, earnings and accounts receivables throughout the Class Period. Immediately following this announcement, the NASDAQ halted trading in Chronimed stock, which was then trading at $9.35 per share. When trading resumed on June 22, 2001, Chronimed's stock price plummeted by 49% to close at $4.75. The lead plaintiff motion must be filed no later than August 14, 2001.
INFOSPACE, INC. (Nasdaq:INSP) (Class Period: 01/26/00 - 01/30/01) The complaint charges InfoSpace, Inc. ("InfoSpace") and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition concerning InfoSpace's actual FY 1999 and FY 2000 financial performance and Defendants' expectations concerning InfoSpace's FY 2001 revenue and earnings. In fact, neither InfoSpace's reported FY 1999 and FY 2000 results nor its projected FY 2001 performance were accurate. Defendants' public representations were the result of Defendants' efforts to manipulate InfoSpace's reported earnings and expected FY 2001 performance and were designed to (and did) allow: (i) InfoSpace's founder and Chairman, Naveen Jain, to sell millions of dollars of his own InfoSpace shares at artificially inflated prices; and (ii) allow Defendants to complete a series of acquisitions using shares of InfoSpace's artificially inflated stock as currency, including the October 2000 acquisition of Go2Net.
On January 30, 2001, after Defendants had completed several acquisitions using inflated InfoSpace shares as currency, Defendants disclosed that, contrary to the representations made by them during 2000 that InfoSpace was experiencing strong revenue growth during 4Q99, and FY 2000 and that InfoSpace would continue to post strong revenue growth through FY 2001, InfoSpace would report no revenue growth or EPS for FY 2001, but rather would report declining revenue and a significant loss for the year. As Defendants began to reveal some of their improper conduct, including the fact that Defendants' projected revenues and earnings estimates were false, InfoSpace's shares fell to less than $6 per share, a 95% decline from their Class Period high of $138-1/2 per share. The complaint was filed in the U.S. District Court for the Western District of Washington. The lead plaintiff motion must be filed no later than August 18, 2001.
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder in any of the companies listed above and would like to be a lead plaintiff in one of these securities class actions, please contact Schiffrin & Barroway at 888-299-7706.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca