NEW YORK, Nov. 21, 2001 (PRIMEZONE) -- The following was released today by Bull & Lifshitz LLP: Notice is hereby given that on November 20, 2001, a securities class action lawsuit was filed in the United States District Court for the Southern District of New York against StarMedia Network, Inc. ("StarMedia") (Nasdaq:STRM)and certain officers and directors of the Company on behalf of all purchasers of the common stock of StarMedia from April 11, 2000 through November 19, 2001, inclusive (the ``Class Period'').
If you purchased StarMedia securities during the Class Period you may, not later than January 21, 2002, move the court to serve as a lead plaintiff, provided you meet certain legal requirements.
The complaint charges StarMedia Networks, Inc. and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that StarMedia reported artificially inflated financial results in press releases and filings made with the SEC by improperly recognizing revenue in violation of Generally Accepted Accounting Principles (``GAAP''). Specifically, the complaint alleges that two of the Company's primary subsidiaries, AdNet S.A. de C.V. and StarMedia Mexico, S.A. de C.V., had engaged in improper accounting practices which had the effect of materially overstating StarMedia's reported revenues and earnings by at least $10 million. On November 19, 2001, as alleged in the complaint, StarMedia issued a press release announcing that based on the "preliminary" results of an internal investigation into its accounting practices, it expects to restate its financial statements for fiscal year 2000 and the first two quarters of 2001 and that those financial statements should not be relied upon. The Company further reported that its Chief Financial Officer had "resigned." Immediately following the announcement of the restatement, the Nasdaq Stock Market halted trading in StarMedia stock, pending the receipt of additional information from the Company. StarMedia stock last traded at $0.38 per share, which is 98.5% less than the Class Period high of $25.50, reached on April 11, 2000.
Plaintiff seeks to recover damages on behalf of all purchasers or acquirers of StarMedia common stock during the Class Period. Plaintiff is represented in this class action by the New York law firm of Bull & Lifshitz, LLP. Bull & Lifshitz, LLP has extensive experience in prosecuting investor class actions. For more information regarding Bull & Lifshitz, LLP, please view our Website at, www.nyclasslaw.com. To obtain additional information regarding this action please visit www.nyclasslaw.com/infopackage.html.
If you wish to discuss this action, or have any questions concerning this notice or your rights or interests with respect to this matter, please contact Bull & Lifshitz, LLP at (212) 213-6222, fax number (212) 213-9405 or by e-mail at www.nyclasslaw.com/infopackage.html or at counsel@nyclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca