COLCHESTER, Conn., Nov. 24, 2004 (PRIMEZONE) -- Scott + Scott, LLC (http://www.scott-scott.com ) has filed a class action lawsuit in the United States District Court for the Central District of California on behalf of purchasers of Autobytel Inc. ("Autobytel") (Nasdaq:ABTL) common stock during the period between July 24, 2003 and October 21, 2004 (the "Class Period"). For more information, please e-mail: (AutobytelLitigation@scott-scott.com or nrothstein@scott-scott.com) or by calling 800-404-7770 (EST) or 800-332-2259 (PST). You can dial in California at 619-233-4565. Scott + Scott, LLC is located at 108 Norwich Avenue, Colchester, CT 06415; phone: 860/537-3818; fax: 860/537-4432.
The complaint charges Autobytel and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Autobytel is an automotive marketing services company that helps dealers and manufacturers through its marketing, advertising and customer relationship management tools and programs, primarily through the Internet.
The Complaint alleges that during the Class Period defendants disseminated materially false and misleading statements concerning the Company's results and operations. The true facts, which were known by each of the defendants but concealed from the investing public during the Class Period, were that the Company inappropriately recorded revenue/income associated with its dealer sales credits and that as a result of this, the Company's financial results were materially inflated. That the Company's financial results were in violation of Generally Accepted Accounting Principles and that the Company lacked adequate internal controls to issue earnings or projection reports. Finally, that the Company was experiencing weaker than claimed customer relationship management ("CRM") revenues and zero growth in its dealer network size and that as a result of the above, the Company's financial results were materially inflated at all relevant times.
On October 21, 2004, the Company revealed its third quarter 2004 financial results would be rescheduled because the Audit Committee and Board of Directors of the Company were directing an internal review of the accounting treatment of certain credits that were recognized as revenue during the preceding quarters. Upon the revelation of these illegal acts, the Company's shares fell to $6.88 from $8.81, a drop of over 28%. Autobytel Inc. will restate some previous financial statements after an internal review uncovered accounting errors. The Irvine, California company expects to restate its financial statements for the second, third and fourth quarters of 2003, full-year 2003 and the first and second quarters of 2004. In addition, its report for the quarter ended Sept. 30, 2004 will be further delayed until the restated statements are filed. As a result, it expects to receive a notification from Nasdaq that it is not in compliance with listing requirements and that its stock may be delisted
If you purchased or acquired the shares of Autobytel from July 24, 2003 through October 21, 2004, and sustained damages, you may, no later than sixty days from October 29, 2004 move the Court to serve as lead plaintiff of the class. Signing a certification with Scott + Scott, LLC does not make you a lead plaintiff without further authorization.
Scott + Scott, LLC is a Connecticut-based law firm with offices in Ohio and California, with a national practice and reputation. Scott + Scott dedicates itself to client communication and satisfaction. The firm is currently litigating major securities, antitrust and employee retirement plan cases throughout the United States and represents pension funds, charities, foundations, individuals and other entities worldwide -- in both class and non-class cases. Please visit our website at http://www.scott-scott.com to learn more about the firm, its practice and other cases. If you wish to discuss this action with an attorney or have any questions concerning this notice, your rights or any matter within our expertise, please contact attorney Neil Rothstein at nrothstein@scott-scott.com or by calling 800-404-7770 (EST) or 800-332-2259 (PST). You can dial direct in California at 619-233-4565. Scott + Scott, LLC is located at 108 Norwich Avenue, Colchester, CT 06415; phone: 860/537-3818; fax: 860/537-4432.
SCOTT +SCOTT, LLC's DEDICATION TO THE CLASS AND THE LITIGATION PROCESS
Scott + Scott, LLC, which prides itself on its dedication to the class and its tenacity to get the best possible result, recently won an important decision in the Halliburton Securities Litigation (NYSE:HAL) case on behalf of its Lead Plaintiff, halting a settlement that was deemed inadequate by the Court in the manner in which the case was litigated and the result which really conferred no benefit upon the class. Further, the settlement was completed quickly and secretly behind Scott + Scott's and its lead plaintiff's back (a non-profit charitable organization). Scott + Scott, LLC fought this battle to successfully have final approval denied. This unusual procedural victory took over a year and a half. Information regarding this litigation event can be found through these links: http://www.washingtonpost.com/wp-dyn/articles/A13102-2004Sep10.html and http://www.taipeitimes.com/News/biz/archives/2004/09/12/2003202628. The firm is also working on such cases as Hartford Financial ERISA, Merck ERISA, Chiron Corp., Star Gas, Netflix, Travelzoo, Aon Corp., United Rentals, AIG and more.
For more information on this and other class action lawsuits visit the Class Action Newsline at www.primezone.com/ca