LITTLE ROCK, Ark., June 26, 2002 (PRIMEZONE) -- The Emerson Firm, a securities class action trial law firm, announced today that a class action has been filed in the United States District Court for the Southern District of California on behalf of purchasers of Mutual Risk Management Ltd. ("Mutual Risk" or the "Company") (Pink Sheets:MLRME) previously (NYSE:MM) publicly traded securities during the period between February 16, 2000 and April 2, 2002, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be obtained from the Firm.
The complaint charges Mutual Risk and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that during the Class Period, Mutual Risk and its most senior officers and directors disseminated materially false financial statements for each of Mutual Risk's interim quarters during that period and for the years ended December 31, 2000 and 2001, which materially overstated the Company's cumulative revenues and its net income. Defendants also made a series of other materially false and misleading statements about Mutual Risk and its financial condition and performance. As a result of the materially false and misleading statements and omissions described herein, Mutual Risk stock was inflated to an all-time high of $23.75 per share.
Mutual Risk also represented in each of its quarterly and annual filings with the SEC that the financial statements included therein had "been prepared in conformity with generally accepted accounting principles" and "reflected all adjustments necessary for a fair presentation of results for such periods." In reality, each of Mutual Risk's financial statements violated GAAP by understating reserves for potential claims. The financial results included in Mutual Risk's SEC filings during the Class Period were thereby rendered materially false and misleading.
Then, on April 2, 2002, the Company admitted that even its disastrous Q4 2001 results (announced February 19, 2002) were not accurate, putting the Company's shares into another "free fall," trading at just pennies per share following the April 2, 2002 admission.
If you bought Mutual Risk publicly traded securities between February 16, 2000 and April 2, 2002, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than August 6, 2002. If you are a member of this class, you can join this class action by contacting Tanya Autry in the Shareholder Relations Department at The Emerson Firm. Any member of the purported class may move the Court to serve as lead plaintiff through The Emerson Firm or other counsel of their choice.
The Emerson Firm has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Houston, Texas and Little Rock, Arkansas, but represents investors throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm.
The Emerson Firm Investor Relations Department: Tanya R. Autry P.O. Box 25336 Little Rock, AR 72221-5336 Toll Free: 1-800-663-9817 E-mail: tanya.autry@worldnet.att.net
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.