CORAL SPRINGS, Fla., March 27, 2006 (PRIMEZONE) -- The law firm of Mager & Goldstein LLP announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all purchasers of securities of H & R Block Inc. ("H&R" or the "Company") (NYSE:HRB) between February 24, 2004 and March 14, 2006, inclusive (the "Class Period").
The Complaint alleges that defendants violated federal securities laws by issuing financial statements during the Class Period that were materially false and misleading due to the following: (1) defendant did not properly account for its state effective income tax rate and as a result, its 2004 and 2005 revenues were materially overstated; and (2) defendant engaged in deceptive marketing of its Express IRA product from which it obtained a material portion of its revenues, thereby subjecting investors and the Company to an undisclosed risk. By engaging in the alleged wrongdoing, H&R insiders were able to sell their personal H&R stock at artificially inflated prices.
After the close of regular trading on February 23, 2006, H&R issued a press release which revealed that it would be restating its 2004 and 2005 financial reports due to improper accounting of its corporate taxes. The market reacted to this news and the price of H&R common stock dropped from $25.19 per share on February 23, 2006 to $23.01 per share on February 24, 2006 on usually high trading volume, representing a drop of 8.6% in just one day.
If you bought H&R securities between February 24, 2004 and March 14, 2006 and sustained damages, you may, no later than May 16, 2006, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative who acts on behalf of other class members in directing the litigation. Under certain circumstances, several class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by whether or not you serve as lead plaintiff. You may retain Mager & Goldstein LLP, or other counsel, to represent you in this action.
Mager & Goldstein has offices in Pennsylvania, Florida and Colorado. The firm's attorneys have been litigating complex commercial matters for over twenty years.
If you wish to discuss the lawsuit against H&R Block Inc. with us, or have any questions about this notice or your legal rights with regard to this case, please contact either of the following attorneys:
Jayne Arnold Goldstein Lee Albert 2825 University Drive One Liberty Place, 21st Floor Suite 350 1650 Market Street Coral Springs, Florida 33065 Philadelphia, PA 19103 (866) 849-7545 Toll Free (866) 284-3280 Toll Free (954) 341-0844 Telephone (215) 640-3280 Telephone (954) 341-0855 Fax (215) 640-3281 Fax jgoldstein@magergoldstein.com lalbert@magergoldstein.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca