BALA CYNWYD, Pa., Nov. 19, 2001 (PRIMEZONE) -- Schiffrin & Barroway, LLP announced today that it recently filed lawsuits on behalf of shareholders of Internet Security Systems, Inc., DQE, Inc., Sirius Satellite Radio, Inc. and Apple Computer Inc. for violations of the federal securities laws.
INTERNET SECURITY SYSTEMS, INC. (Nasdaq:ISSX) (Class Period: 04/01/01 - 07/02/01). The complaint charges ISSX and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that on April 18, 2001, ISSX reported its 23rd consecutive quarter of growth. For the first quarter of 2001, it claimed revenues in excess of $61 million and net income of $6.5 million or $0.15 per share. ISSX claimed that the Company's "financial performance continued to show strength and our solid execution and focus on expense control enabled us to meet our profit guidance provided at the beginning of the quarter." ISSX claimed on April 18, 2001 that its guidance for the second quarter ending June 30, 2001 was to produce revenues between $64 and $67 million and earnings in the range of $0.15 per diluted share, even though defendants knew they could not achieve these numbers. ISSX claimed in its April 18, 2001 press release that "the public can continue to rely on the expectations published in its earnings release and web site as being its current expectations on matters covered, unless ISSX publishes a notice stating otherwise." Defendants, who were in control of ISSX during the class period, knew that their business was slowing down, because they received financial reports on a frequent basis, and knew that they had too many employees in view of the slowdown.
On July 2, 2001, after the quarter had ended, ISSX issued a press release in which it stated that ISSX' management expected revenues in the range of $50-52 million, not $64-67 million, and a loss per diluted share between $0.00 to $0.02, rather than earnings of $0.15 to $0.16. Just after the July 18, 2001 press conference in which, ISSX released its actual numbers, and admitted that it had over hired and over indulged on fringe benefits, travel and entertainment, ISSX laid off 12% of its work force, confirming what its executives had known or recklessly disregarded throughout the Class Period, that it had too many employees and greater expenses than it could afford, given its level of sales. Class members who had bought ISSX shares during the Class Period -- when ISSX told them they could rely on its guidance -- found out on the morning of July 3, 2001 that ISSX had tumbled more than 40 percent. The complaint was filed in the U.S. District Court for the Northern District of Georgia. The lead plaintiff motion must be filed no later than November 28, 2001.
DQE, INC. (NYSE:DQE) (Class Period: 12/06/00 - 04/30/01). The complaint charges DQE and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges DQE issued positive statements concerning the significant and positive impact that DQE Enterprises, Inc. ("DQE Enterprises"), the Company's investment subsidiary, was having, and would continue to have, on DQE's financial results.
During this time, the market for initial public offerings had dramatically slowed down. Accordingly, the ability of the companies in DQE Enterprises' investment portfolio to go public was substantially impaired. Defendants, however, issued a stream of positive statements concerning the Company's operations and prospects, but failed to disclose the impaired nature of DQE Enterprises' investments and that the Company would not realize the investment gains that defendants had caused the market to expect. As a result, defendants' estimates, projections and opinions as to the Company's operations, products, earnings and income were knowingly lacking in a reasonable basis at all relevant times. This information finally became publicly known on April 30, 2001, when DQE reported its earnings for the first quarter of 2001 and revised its earnings outlook for the full-year, based in part, on the weakened outlook for DQE Enterprises. In response to this negative announcement, when trading resumed on May 1, 2001, the price of DQE common stock dropped from $30.43 per share to $23.75 per share on extremely heavy trading volume. The complaint was filed in the U.S. District Court for the Western District of Pennsylvania. The lead plaintiff motion must be filed no later than December 5, 2001.
SIRIUS SATELLITE RADIO, INC. (Nasdaq:SIRI) (Class Period: 02/17/00 - 04/02/01). The complaint charges Sirius Satellite Radio, Inc. and certain of its officers and directors with violating the federal securities laws by failing to disclose facts know to them, or recklessly disregarded by them, which demonstrated that the announced commercial launch dates for the Company's satellites required for the Company's service, published throughout the Class Period, were impossibly ambitious. Defendants knew, or recklessly disregarded, that it would be possible for the Company to offer its service commercially by the end of 2000, as initially disclosed, or early in 2001, as subsequently disclosed. The Complaint alleges that at all times during the Class period Defendants issued materially false and misleading statements and press releases concerning when the Company's service would be commercially available, which caused the market price of Sirius common stock to be purchasing shares of Sirius common stock at artificially inflated prices, Plaintiff and the Class have suffered damages. The complaint was filed in the United States District Court for the District of Vermont, 11 Elmwood Avenue, Burlington, Vermont. The lead plaintiff motion must be filed no later than December 8, 2001.
APPLE COMPUTER, INC. (Nasdaq:AAPL) (Class Period: 07/19/00 - 09/28/00). The complaint charges Apple Computer, Inc. and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that on 7/18-19/00, Apple introduced its new Power Mac G4 Dual Processor, G4 Cube and iMac personal computers, representing that they were exceptionally powerful, fast and attractive, coming with exceptionally attractive designs and containing new and revolutionary features. At this time, Apple represented that the development of these new products was completed, they were ready for mass-production and would be available in quantity very shortly. Apple claimed this would result in Apple achieving strong revenue and earnings per share ("EPS") growth in its 4thQ F00 (to end 9/30/00) and F01. As a result, Apple's stock climbed to a Class Period high of $64-1/8 in early 9/00, when four top Apple officers sold 370,000 shares of their Apple stock for $22 million. Suddenly, just 20-25 trading days later, on 9/28/00, Apple shocked investors by revealing a huge 4thQ F00 revenue and EPS shortfall due to very poor sales to its education (K-12) market and poor consumer acceptance of its new personal computer products (some of which had been late to market, had defects and lacked features which were essential for market success), resulting in the accumulation of excessive inventories of finished goods in Apple's distribution channel and Apple having to cancel component part orders and, thereby, incur financial penalties. As rumors of Apple's troubles circulated prior to and then following Apple's shocking disclosure, Apple's stock collapsed from $61-3/64 on 9/20/00 to $25-3/8 on 9/29/00, continuing to fall to as low as $17 and then to $13-5/8, as investors absorbed the full impact of these shocking revelations, a stock decline that wiped out over $10 billion of Apple's market capitalization in just a few days. The complaint was filed in the United States District Court for the Northern District of California . The lead plaintiff motion must be filed no later than December 15, 2001.
If you purchased the securities of any of the companies listed below during the respective class periods, you may be a member of the class and have until the date specified to move the court to become the lead plaintiff. For more information on a particular lawsuit and to view the complaint, you may visit our website at www.sbclasslaw.com. To learn more about your rights and interests in these cases and your ability to potentially recoup your losses, please contact Schiffrin & Barroway directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002 or by e-mail at info@sbclasslaw.com.