BALA CYNWYD, Pa., Nov. 9, 2001 (PRIMEZONE) -- Schiffrin & Barroway, LLP announced today that it recently filed lawsuits on behalf of shareholders of NextCard, Inc., NetRatings, Inc., Airgate PCS, Inc. and Evolve Software, Inc. for violations of the federal securities laws.
If you purchased the securities of any of the companies listed below during the respective class periods, you may be a member of the class and have until the date specified to move the court to become the lead plaintiff. For more information on a particular lawsuit and to view the complaint, you may visit our Website at www.sbclasslaw.com. To learn more about your rights and interests in these cases and your ability to potentially recoup your losses, please contact Schiffrin & Barroway directly at (888) 299-7706 (toll free) or (610) 822-2221, fax number (610) 822-0002 or by e-mail at info@sbclasslaw.com.
NEXTCARD, INC. (Nasdaq:NXCD) (Class Period: 03/30/00 - 10/30/01). The complaint charges NextCard and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that defendants disseminated false and misleading statements concerning the Company's operations and prospects for 2000 and 2001. In fact, defendants knew NextCard's reserves were materially underfunded and that as a result, its 2000 and 2001 projections and/or results were false. During the Class Period, taking advantage of the inflation in NextCard stock, defendants Lent, Cai, Qureshey and Hashman sold almost $9 million worth of their own NextCard stock at artificially inflated prices of as much as $10.89 per share.
Then, on Oct. 31, 2001, it was revealed that, among other things, defendants had concealed that during the Class Period: (a) due to the deteriorating quality of NextCard's portfolio, the Company would need to dramatically increase its reserves for loan losses in fiscal 2000 and Q1, Q2 and Q3 2001 and as a result its reported value of its loans for fiscal 2000 and Q1 and Q2 2001 was overstated; (b) the Company had improperly recorded "credit losses" as "fraud losses" and as a result the Company's "securitization activities" during the Class Period did not qualify for "low level recourse treatment." Defendants knew that as a result, such would dramatically increase the Company bank division's risk weighted assets, and would decrease the Company's "risk based capital ratio" below federal banking guidelines -- rendering the Company "significantly under capitalized"; (c) because the Company's risk-based capital ratio had plummeted below acceptable levels, it had been technically subject to a Prompt Correction Action Order and thereby restricted from accepting or reviewing any broken deposits; (d) as a result of the above, the Company's 2000 and 2001 results and projections were materially false and misleading. These disclosures shocked the market, causing NextCard's stock to decline to $0.84 per share before closing at $0.87 per share on Oct. 31, 2001 on volume of more than 43 million shares, inflicting millions of dollars of damage on plaintiff and the Class. The complaint was filed in the United States District Court for the Northern District of California. The lead plaintiff motion must be filed no later than December 31, 2001.
NETRATINGS, INC. (Nasdaq:NTRT) (Class Period: 12/09/99 - 12/06/00). The complaint alleges violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On or about December 9, 1999, NetRatings commenced an initial public offering of 4,000,000 of its shares of common stock at an offering price of $17 per share (the "NetRatings IPO"). In connection therewith, NetRatings filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) the Underwriters had solicited and received excessive and undisclosed commissions from certain investors in exchange for which the Underwriters allocated to those investors material portions of the restricted number of NetRatings shares issued in connection with the NetRatings IPO; and (ii) the Underwriters had entered into agreements with customers whereby the Underwriters agreed to allocate NetRatings shares to those customers in the NetRatings IPO in exchange for which the customers agreed to purchase additional NetRatings shares in the aftermarket at pre-determined prices. The complaint was filed in the United States District Court for the Southern District of New York, located at 500 Pearl Street, New York, NY. The lead plaintiff motion must be filed no later than January 5, 2002.
AIRGATE PCS, INC. (Nasdaq:PCSA) (Class Period: 09/27/99 - 12/06/00). The complaint alleges violations of Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On or about September 27, 1999, Airgate commenced an initial public offering of 6,700,000 of its shares of common stock at an offering price of $17 per share (the "Airgate IPO"). In connection therewith, Airgate filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) Defendants had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Defendants allocated to those investors material portions of the restricted number of Airgate shares issued in connection with the Airgate IPO; and (ii) Defendants had entered into agreements with customers whereby Defendants agreed to allocate Airgate shares to those customers in the Airgate IPO in exchange for which the customers agreed to purchase additional Airgate shares in the aftermarket at pre-determined prices. The complaint was filed in the United States District Court for the Southern District of New York, located at 500 Pearl Street, New York, NY. The lead plaintiff motion must be filed no later than January 6, 2002.
EVOLVE SOFTWARE, INC. (Nasdaq:EVLV) (Class Period: 08/09/00 - 12/06/00). The complaint alleges violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. On or about August 9, 2000, Evolve commenced an initial public offering of 5,000,000 of its shares of common stock at an offering price of $9 per share (the "Evolve IPO"). In connection therewith, Evolve filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) the Underwriters had solicited and received excessive and undisclosed commissions from certain investors in exchange for which the Underwriters allocated to those investors material portions of the restricted number of Evolve shares issued in connection with the Evolve IPO; and (ii) the Underwriters had entered into agreements with customers whereby the Underwriters agreed to allocate Evolve shares to those customers in the Evolve IPO in exchange for which the customers agreed to purchase additional Evolve shares in the aftermarket at pre-determined prices. The complaint was filed in the United States District Court for the Southern District of New York, located at 500 Pearl Street, New York, NY. The lead plaintiff motion must be filed no later than January 6, 2002.
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder in any of the companies listed above and would like to be a lead plaintiff in one of these securities class actions, please contact Schiffrin & Barroway at (888) 299-7706.
More information on these and other class actions can be found at www.primezone.com/ca.