BALA CYNWYD, Pa., May 12, 2003 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Central District of California on behalf of all purchasers of the common stock of eUniverse Inc. ("eUniverse" or the "Company") (Nasdaq:EUNI) from July 30, 2002 through May 5, 2003, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between July 30, 2002 and May 5, 2003, thereby artificially inflating the price of eUniverse common stock. Throughout the Class Period, as alleged in the Complaint, defendants issued numerous statements and filed quarterly reports with the SEC which described the Company's increasing financial performance. The Complaint alleges that these statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (i) that the Company had materially overstated its net income and earnings per share; (ii) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (iii) that as a result, the value of the Company's net income and financial results were materially overstated at all relevant times.
On May 6, 2003, before the opening of trading, the Company shocked the market by announcing that it "intends to restate its financial statements for the second and third quarters of the year ended March 31, 2003" and possibly also for the first quarter of fiscal 2003. The Company also told investors not to rely on its reported financial results for the first three quarters of fiscal 2003. The Company attributed the need for the restatement to the "incorrect processing of certain transactions within the Company's accounting system." The Company further said that the restated financial results will differ materially from the previously-reported results. Following this announcement, the NASDAQ halted trading in eUniverse shares and stated that the shares will remain halted until the company has supplied additional information.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/cgi/signup.cgi.
If you are a member of the class described above, you may, not later than July 11, 2003, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
CONTACT: Schiffrin & Barroway, LLP
Marc A. Topaz, Esq.
Stuart L. Berman, Esq.
Three Bala Plaza East, Suite 400
Bala Cynwyd, PA 19004
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at info@sbclasslaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca