NEW YORK, May 10, 2002 (PRIMEZONE) -- Wechsler Harwood Halebian & Feffer LLP ("Wechsler Harwood") announces that it has filed a class action lawsuit in the United States District Court for the Southern District of Texas (the "Court"), on behalf of all persons and entities who purchased Seitel Inc. (NYSE:SEI) ("Seitel") common stock from July 13, 2000 through May 3, 2002 (the "Class Period").
According to the complaint, Houston-based Seitel and the individual defendants materially misrepresented the company's financial results for 2000 and 2001 by improperly recognizing revenues. Most of the improper revenue, the complaint says, was attributable to Seitel's undisclosed practice of recording revenue for the licensing of its seismic data and other geophysical information before delivering data to customers. The complaint alleges that the practice ran afoul of Generally Accepted Accounting Principles and artificially inflated Seitel's stock price during the Class Period.
The complaint further alleges that the defendants were motivated to commit the accounting fraud in order to earn commissions and bonuses, which were tied to the company's revenues and earnings. The complaint claims the defendants had nearly $10 million of insider stock sales during the Class Period.
On April 1, Seitel announced that it was restating its financial results for the year 2000 and the first three quarters of 2001. The restatement reduced reported revenue by 15% in 2000 and 30% during the first three quarters of 2001. The complaint further states that it also turned what had purportedly been profits during those periods into losses.
By the time Seitel further detailed the restatements on May 3, 2002, the company's stock price had plunged to $5.65 per share, more than 75% below the Class Period high of $22.72 per share.
If you wish to apply to be lead plaintiff in this action, a motion must be filed on your behalf with the court no later than July 1, 2002. You must meet certain legal requirements. You may contact the attorneys at Wechsler Harwood to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whhf.com) has more information about the firm. If you wish to discuss this action, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood Halebian & Feffer LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 David Leifer, Wechsler Harwood Shareholder Relations Department: dleifer@whhf.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.