NEW YORK, Sept. 5, 2003 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Southern District of California, case number 03 Civ.1779, on behalf of all persons or entities who purchased or otherwise acquired SureBeam Corp. ("SureBeam" or the "Company") securities (Nasdaq:SUREE) during the period between March 16, 2001 and August 25, 2003, both dates inclusive (the "Class Period"). The Complaint names SureBeam, Lawrence A. Oberkfell, and David A. Rane as defendants.
To discuss this action, this announcement, or your rights or interests, please contact plaintiff's counsel, Eric J. Belfi or Gregory Linkh at Rabin, Murray & Frank LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com.
The Complaint alleges the statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (1) that the Company was improperly recognizing revenue in violation of GAAP; (2) that the Company's improper revenue recognition was done through its recognition of revenue from non-affiliated parties when the Company knew that such parties could not pay and for which SureBeam would forgive those receivables; (3) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (4) that as a result, the values of the Company's earnings, net income and earnings per share were materially overstated at all relevant times.
SureBeam's accounting difficulties continued, and on August 21, 2003, the Company announced that it was dismissing Deloitte & Touche due to issues that had not been resolved to the auditor's satisfaction. Specifically, Deloitte & Touche was not satisfied with certain aspects of the Company's revenue recognition policies and certain contracts entered into in 2000 and affecting subsequent periods.
Plaintiff is represented by the law firm of Rabin, Murray & Frank LLP. Rabin, Murray & Frank LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired SureBeam common stock during the Class Period described above, you may, no later than October 27, 2003, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. Contact plaintiff's counsel Eric J. Belfi or Gregory Linkh of Rabin, Murray & Frank LLP to further discuss this action, this announcement, or your rights or interests.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca