PHILADELPHIA, Nov. 1, 2002 (PRIMEZONE) -- The law firm of Spector, Roseman & Kodroff, P.C. announces that a class action has been filed on behalf of purchasers of Concord EFS, Inc. ("Concord" or the "Company") (Nasdaq:CEFT) publicly traded securities during the period between October 31, 2001 and September 4, 2002, inclusive (the "Class Period").
The Complaint alleges that Concord and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between October 31, 2001 and September 4, 2002.
The complaint alleges that the defendants made material misrepresentations and omissions of material facts concerning the company's business performance, in violation of the Securities Exchange Act of 1934 and associated rules during the Class Period October 30, 2001 through and including September 4, 2002 ("Class Period"). The complaints alleges Concord and its top officers issued false and misleading statements and concealed the truth about the Company's results and business in order to allow Concord stock to trade at artificially inflated levels. Defendants repeatedly misrepresented the strength of Concord's operating performance and its ability to post 30%-35% earnings per share growth in order to prop up the price of Concord stock so that defendants could complete acquisitions using Concord's stock as currency and sell off 5.4 million of their own Concord shares at prices as high $32.07 per share, for over $160 million in proceeds.
However the truth was that the Company's business was not growing as represented, but rather was suffering from increased costs and declining margins. The "record" growth and profits defendants reported were false, resulting from the inclusion of non-operating gains in its results and the exclusion of operating expenses from its reported results. These manipulations allowed Concord to report favorable results despite the fact that its business operations were not as strong as represented.
On September 5, 2002, the market was shocked when Concord announced that its CEO was stepping down and that its 2002 and 2003 earnings would be much lower than represented. On this news, Concord's stock dropped to $12.60 per share. Concord's stock price has fallen more than 60% from its Class Period high of more than $35 per share.
If you purchased Concord EFS securities during the Class Period, you may, no later than November 8, 2002 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 Concord securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
To join this action online, please visit http://www.srk-law.com/dbjoinaclassaction.asp. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via E-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.spectorandroseman.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania and San Diego, California, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.