NEW YORK, Sept. 2, 2003 (PRIMEZONE) -- Abbey Gardy, LLP commenced a Class Action lawsuit in the United States District Court for the Southern District of California on behalf of a class (the "Class") of all persons who purchased or acquired securities of SureBeam Corporation ("SureBeam" or the "Company") (Nasdaq:SUREE) between March 16, 2001 and August 20, 2003 inclusive (the "Class Period").
The Complaint names as defendants SureBeam Corporation, Lawrence A. Oberkfell and David A. Rane. The Complaint alleges that defendants 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 during the Class Period thereby artificially inflating the price of SureBeam securities.
The complaint alleges that during the Class Period defendants caused SureBeam to report in its public filings, press releases and other public statements favorable financial results by, among other things, artificially inflating the Company's revenue and earnings by improper revenue recognition practices. This inflation allowed SureBeam to raise net proceeds of $60 million and to complete an initial public offering ("IPO") of 6.7 million shares on March 16, 2001. On July 30 and August 12, 2003, Surebeam issued press releases stating that the Company was delaying the release of its second quarter earnings. On August 21, 2003, Surebeam issued a press release stating that Deloitte & Touche, LLP, SureBeam's independent auditor for 2003, had raised issues involving "certain aspects of SureBeam's revenue recognition policies and certain contracts entered into in 2000 and affecting subsequent periods." On this news Surebeam's stock dropped to $1.55 per share.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired SureBeam securities during the Class Period. If you purchased or otherwise acquired SureBeam securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased SureBeam securities during the Class Period, you may, no later than October 27, 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 plaintiffs.'' Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
Abbey Gardy, LLP has been retained as one of the law firms to represent the Class. The attorneys at Abbey Gardy, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact Nancy Kaboolian, Esq. or Susan Lee of Abbey Gardy, LLP at (212) 889-3700 or 800-889-3701, or e-mail them at nkaboolian@abbeygardy.com or slee@abbeygardy.com.