MILWAUKEE, March 3, 2003 (PRIMEZONE) -- The law firm of Ademi & O'Reilly, LLP announced that a class action lawsuit was filed on February 5, 2003, on behalf of purchasers of the securities of Carreker Corp. ("Carreker") or (the "Company") (Nasdaq:CANIE) between May 20, 1998 and December 10,2002 (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on our Web site at: www.ademilaw.com/carreker/php.
The complaint charges that defendants violated Federal securities laws by issuing a series of materially false and misleading statements to the market between May 20, 1998 and December 10, 2002. According to the complaint, throughout the Class Period, Carreker filed financial statements with the SEC which represented that the Company was consistently delivering numerous consecutive quarters of record, double-digit growth, which the Company attributed to the strong demand for its products and Carreker's business model. In addition, according to the complaint, the Company expressly assured investors of its "dedication to transparent reporting practices" and highlighted the supposed "quality and integrity of (Carreker's) accounting and corporate governance practices." These statements were materially false and misleading, according to the complaint, because they failed to disclose that the Company had been improperly recognizing revenues throughout the Class Period, thereby artificially inflating its revenues, income and earnings per share. On December 10, 2002, the Company issued a press release announcing that it was investigating whether revenues were improperly recognized by being booked at once instead of ratably over a period of time, as required by applicable generally accepted accounting principles. This belated disclosure severely and negatively impacted Carreker's stock price, causing it to fall by 22.6% in one day on extremely heavy trading volume, from a December 9 close of $5.08 per share to close at $3.93 per share on December 10.
Subsequently, the SEC initiated an investigation, which is ongoing, into the Company's accounting practices. On January 28, 2003, the Company announced that it would be restating the financial reports it has filed since 1998.
If you bought the securities of Carreker between May 20, 1998 and December 10, 2002, you may, no later than April 11, 2003, request that the Court appoint you as lead plaintiff. 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 the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Ademi & O'Reilly, LLP, or other counsel of your choice, to serve as your counsel in this action.
If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the Guri Ademi at (866) 264-3995 or via e-mail at gademi@ademilaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.