LITTLE ROCK, Ark., Dec. 17, 2002 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLPannounced today that a class action has been filed in the United States District Court for the Southern District ofFlorida on behalf of purchasers of the common stock of Answerthink, Inc. ("Answerthink" or the "Company")(Nasdaq:ANSR) publicly traded securities during the period between October 17, 2000 and April 25, 2002,inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can beviewed on the firm's website at http://www.cauleygeller.com/library/user_images/answerthink.pdf.
The Complaint alleges that defendants Answerthink, John F. Brennan, Ted A. Fernandez ("Fernandez"), Allan R.Frank ("Frank"), Edmund R. Miller, William Kessinger and Bruce Rauner violated Sections 10(b) and 20(a) of theSecurities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder.
As alleged in the complaint, throughout the Class Period, defendants issues a series of false and misleadingstatements announcing "record" financial results. In violation of Generally Accepted Accounting Principles("GAAP"), the complaint alleges, defendants failed to disclose that the "record" results included revenuesrecognized from transactions with related parties who were near-bankruptcy and lacked the financial means tofinalize the sales. Specifically, in order to boost reported revenues and earnings during the third and fourthquarters of 2000, the Company recognized approximately $16.7 million of revenue in connection with varioustransactions with related parties who were either facing imminent bankruptcy or were otherwise unable to surviveas a going concern and remit the full $16.7 million as promised.
As a result, the complaint alleges, defendants were able to report artificially inflated results which permitteddefendants Fernandez and Frank to receive performance-based bonuses and allowed certain of the defendants tosell stock at inflated prices. Ultimately, more than $6 million of receivables and worthless stock in one of therelated party companies, which was received as partial payment, was written off through a charge to earnings.
On February 7, 2002, when defendants were no longer able to include these illusory revenues in their financialresults, the Company reported a huge drop in revenues. As a result, Answerthink investors who purchased stockin reliance on the integrity of defendants' statements and publicly-filed financial reports have sustainedtremendous losses. Answerthink stock, which traded at $18 per share on October 17, 2000, dramaticallydeclined and traded at only $1.98 per share on November 13, 2002.
If you bought Answerthink publicly traded securities between October 17, 2000 and April 25, 2002, inclusive, andyou wish to serve as lead plaintiff, you must move the Court no later than January 13, 2003. If you are a memberof this class, you can join this class action online at http://cauleygeller.com/template8.asp?pcode=6&pp=1. Anymember of the purported class may move the Court to serve as lead plaintiff through Cauley Geller or othercounsel of their choice, or may choose to do nothing and remain an absent class member.
Cauley Geller is a national law firm that represents investors and consumers in class action and corporategovernance litigation. It is one of the country's premiere firms in the area of securities fraud, with in-house financeand forensic accounting specialists and extensive trial experience. Since its founding, Cauley Geller hasrecovered in excess of two billion dollars on behalf of aggrieved shareholders. The firm maintains offices in BocaRaton, Little Rock, and San Diego.
If you have any questions about how you may be able to recover for your losses, or if you would like to considerserving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm'swebsite at http://www.cauleygeller.com.
CAULEY GELLER BOWMAN & COATES, LLP Client Relations Department: Jackie Addison, Heather Gann or Sue Null P.O. Box 25438 Little Rock, AR 72221-5438 Toll Free: 1-888-551-9944 E-mail: info@cauleygeller.com
More information on this and other class actions can be found on the Class Action Newsline atwww.primezone.com/ca