PHILADELPHIA, July 6, 2001 (PRIMEZONE) -- The law firm of Berger & Montague, P.C. (http://www.investorprotect.com ) announced that it has filed an action on behalf of an investor against AremisSoft Corporation (Nasdaq:AREM) ("AremisSoft" or the "Company"), Lycourgos K. Kyprianou, Roys Poyiadjis, and Michael Tymvios, alleging violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the "Exchange Act"). The complaint was filed in the United States District Court for the District of New Jersey, in Camden and is captioned Keystone Trading Partners v. AremisSoft Corporation, et al.
Plaintiff asserts its claims as class action on behalf of a class (the "Class"), consisting of all persons other than defendants who purchased AremisSoft securities from Dec. 17, 1999, through May 14, 2001, inclusive (the "Class Period"). Plaintiff seeks to recover damages caused to the Class resulting from defendants' violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
During the Class Period, plaintiff alleges, defendants materially misrepresented the Company's business and operations, particularly with respect to a 1999 contract entered into with Bulgarian authorities. Specifically, plaintiff further alleges, the Bulgarian contract was worth approximately $4 million, not the $37 million defendants caused the Company to claim. As a result of these false and misleading statements, the price of AremisSoft common stock price was inflated during the Class Period, directly affecting the price of AremisSoft options as well. Plaintiff also alleges that Individual Defendants Poyiadjis and Kyprianou sold 4.8 million shares of AremisSoft stock at artificially inflated prices and exercised nearly all of 5.8 million options for AremisSoft shares which they subsequently sold, also at artificially inflated prices.
When, on May 14, 2001, a report by a short-seller alerted investors to the fact that AremisSoft's representations about the Bulgarian Healthcare contract were false and misleading and that other accounting irregularities and misrepresentations during the Class Period had distorted the truth about AremisSoft's business and operations, the market reacted dramatically. Directly as a result of these revelations, the price of AremisSoft common stock plummeted from a closing price of $18.47 on May 14, 2001, to $14.55 on May 15, 2001. Daily volume on May 15, 2001 was enormous, as 12.64 million shares traded hands -- 12 times its 200-day moving average of 1.038 million shares traded per day.
If you purchased the securities of AremisSoft during the Class Period, you may, no later than July 23, 2001, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. If you have sustained substantial losses in AremisSoft securities during the Class Period, please contact Berger & Montague, P.C. at investorprotect@bm.net for a more thorough explanation of the Lead Plaintiff selection process.
The law firm of Berger & Montague, P.C. has more than 50 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years that have resulted in recoveries of several billion dollars to investors. The firm is currently representing investors as lead counsel in actions against Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office Solutions, Inc. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example:
"Class counsel did a remarkable job in representing the class interests." In Re: IKON Offices Solutions Securities Litigation. Civil Action No. 98-4286(E.D.Pa.) (partial settlement for $111 million approved May, 2000).
"...(Y)ou have acted the way lawyers at their best ought to act. And I have had a lot of cases ... in 15 years now as a judge and I cannot recall a significant case where I felt people were better represented than they are here... I would say this has been the best representation that I have seen." In Re Waste Management, Inc. Securities Litigation, Civil Action No. 97-C 7709 (N.D. Ill.) (settled in 1999 for $220 million).
If you purchased the securities of AremisSoft during the Class Period and have any questions concerning this notice or your rights with respect to this matter, please contact:
Todd S. Collins, Esquire Joy Clairmont, Esq. Kimberly A. Walker, Investor Relations Manager Berger & Montague, P.C. 1622 Locust Street Philadelphia, PA 19103 Phone: 888-891-2289 or 215-875-3000 Fax: 215-875-5715 Website: http://www.investorprotect.com e-mail: InvestorProtect@bm.net
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.