NEW YORK, March 25, 2003 (PRIMEZONE) -- Please take notice that Kirby McInerney & Squire, LLP has filed a class action lawsuit on behalf of purchasers of Acclaim Entertainment, Inc. (Nasdaq:AKLM) publicly-traded securities between January 22, 2002 and September 19, 2002, inclusive.
A copy of the complaint is available from the Court for the Southern District of New York or from Kirby McInerney & Squire. Please visit our website, which offers summary and detailed information concerning the claims at www.kmslaw.com/new_cases/acclaim/acclaim.htm, or contact us by phone at (888) 529-4787 or by email at obraun@kmslaw.com
The complaint alleges that, during the Class Period, the defendants materially misrepresented Acclaim's financial results so as to make them seem better than they in fact were, and that such misrepresentations caused Acclaim's stock to trade at artificially-inflated prices during the Class Period. The action seeks to recover damages allegedly suffered by investors who purchased Acclaim shares at such artificially-inflated prices.
Specifically, the complaint alleges that defendants improperly capitalized software development costs and overstated earnings by recording declining allowances for returns and price concessions together with failing to write down receivables despite deteriorating customer quality and increasing delinquent accounts receivables. As a result of this inflation, the complaint alleges, Acclaim was able to complete on advantageous terms a private placement offering raising net proceeds of $21.5 million on April 11, 2002. Months after the offering was completed, Acclaim revealed that its fiscal year 2002 first and second quarter results and 2003 projections were false when issued. As a result of this news, Acclaim stock dropped from a Class Period high of $5.85 to less than $1 per share.
Kirby McInerney & Squire, LLP, specializes in complex litigation, including securities class actions. Kirby McInerney & Squire has repeatedly demonstrated its expertise in this field, and has been recognized by various courts that have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and its achievements and quality of service have been chronicled in published decisions. More information about the firm, class actions in general, or about the role of the lead plaintiff in a securities class action can be obtained at Kirby McInerney & Squire's website at www.kmslaw.com
If you are a member of the class described above, you may, no later than May 13, 2003, move the Court to serve as lead plaintiff of the proposed class, if you so choose. In order to serve as lead plaintiff, however, an investor must meet certain legal requirements, as set out in the Private Securities Litigation Reform Act of 1995. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Class members need not, however, seek appointment as lead plaintiff in order to share in any recovery resulting from this litigation.
For more information contact Ira M. Press, Esq. or Ori Braun at (888) 529-4787 or obraun@kmslaw.com, or visit our website www.kmslaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca