BALA CYNWYD, Pa., Jan. 9, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
A securities class action lawsuit pending in the U.S. District Court for the District of Rhode Island, located at John O. Pastore Federal Building, Two Exchange Terrace, Providence, Rhode Island 02903-1779 (02CV0136) claims that Log On America, Inc. (OTCBB:LOAX) repeatedly issued statements indicating that, among other things, the company was on track to achieve the goals of its business plan and that it was successfully growing its service offerings and customer base through its numerous acquisitions.
Plaintiff seeks damages for violations of Sections 10(b)and 20(a) of the Securities Exchange Act of 1934 on behalf of all investors who bought Log On America, Inc. securities between April 2, 1999 and November 20, 2000 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Log on America, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at www.sbclasslaw.com.
The complaint alleges that the Rhode Island-based Log On America, Inc. issued false and misleading statements to the public for failing to disclose and/or misrepresenting (a) that the revenues the Company was generating from its customer base, which was predominantly consumer-focused, were not sufficient to offset the extensive capital costs that the Company was incurring in order to build out its network and provision its products; (b) that the Company's "growth-by-acquisition" strategy was not meeting with success as the Company had acquired a collection of disparate businesses which it was unable to effectively integrate into its existing businesses; (c) that the Company was experiencing weakening demand for its products and services and was attempting to transition into different markets in order to reinvigorate its sales growth; and (d) that as a result of the foregoing adverse factors, the Company would not be profitable in the near-term, if at all, and would have to completely restructure its operations and slash costs.
On November 20, 2000, the company revealed the extent of its problems and the impact it would have on the Company's future. As a result, the price of Log On America, Inc. stock closed at $1.50 per share significantly below its class period high of $35 reached on April 22, 1999.
If you purchased Log On America, Inc. securities during the period of April 22, 1999 to November 20, 2000, you may be a member of the class and have until January 18, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.