ATLANTA, April 22, 2003 (PRIMEZONE) -- Holzer Holzer & Cannon, LLC announced today that it filed a class action lawsuit in the United States District Court for the Eastern District of New York located at 100 Federal Plaza, Central Islip, NY 11722-4438, on behalf of purchasers of Acclaim Entertainment, Inc. ("Acclaim" or the "Company") (Nasdaq:AKLM) publicly traded securities during the period between January 11, 2002 and September 19, 2002, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or by contacting Holzer Holzer & Cannon, LLC (toll-free) at (888) 508-6832, or by sending an e-mail to mfistel@holzerlaw.com.
The complaint alleges that throughout the Class Period, Defendants issued various false and misleading statements regarding the Company's financial performance. These statements were materially false and misleading, according to the complaint, because they failed to disclose and/or misrepresented that the Company (i) was engaging in channel stuffing, whereby it induced customers to take products that they neither wanted, needed or could sell in the short-term; (ii) was experiencing severe operating problems related to the development, content, cost, market testing, distribution and sales of the Company's products; (iii) was experiencing decreased demand for products, including Turoc: Evolution and Aggressive In-Line, among others, resulting in the Company's inability to meet revenue and earnings guidance; (iv) had distribution and retail sales tracking information systems which caused the Company to materially underestimate allowances for sales returns and price concessions; (v) developed computer games with mature themes which materially impeded the Company's ability to access broad-based retail channels; and (vi) based on the foregoing, Defendants' opinions, projections and forecasts concerning the Company and its operations were lacking in a reasonable basis at all times.
The Class Period ended on September 19, 2002, when Acclaim shocked the market by issuing a press release announcing it now expected to report an operating loss for the fourth quarter of 2002, primarily because of sharply lower revenues. In addition, the Company lowered its guidance for the first and second quarters of its 2003 fiscal year, as well as for the 2003 fiscal year.
Upon release of this news, the market for Acclaim common shares collapsed, losing over 29% of their value in a single day's trading to close at $1.56 per share on September 19, 2002.
If you bought Acclaim publicly traded securities between January 11, 2002 and September 19, 2002, inclusive, and you wish to serve as a lead plaintiff, you must move the Court no later than May 13, 2003. In order to serve as a lead plaintiff, however, you must meet certain legal requirements. If you have any questions about how you may be able to recover your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to contact the firm.
Holzer Holzer & Cannon, LLC has substantial experience representing investors in securities fraud class actions such as this. Holzer Holzer & Cannon, LLC is located in Atlanta, Georgia, but represents investors in securities class action lawsuits throughout the country.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.