BALA CYNWYD, Pa., March 14, 2002 (PRIMEZONE) -- A shareholder sued Actrade Financial Technologies, Ltd. (Nasdaq:ACRT) claiming that the company misled investors about its business and financial condition, as alleged in a complaint filed by the law firm of Schiffrin & Barroway, LLP.
The complaint was filed in the U.S. District Court for the Southern District of New York and seeks damages for violations of federal securities laws on behalf of all investors who bought Actrade Financial Technologies, Ltd. securities between March 11, 1999 through February 11, 2002 (the "Class Period").
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 of Actrade Financial Technologies, Ltd. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our Website at www.sbclasslaw.com.
The complaint alleges that the New York-based Actrade Financial Technologies, Ltd. issued a series of materially false and misleading statements to the market between March 11, 1999 and February 11, 2002. Throughout the Class Period, Actrade issued press releases announcing record quarterly results and describing its business as providing trade financing and business-to-business financing solutions. In addition, the Company, in its fiscal year 2000 and 2001 Annual Reports filed with the SEC on Form 10-K405, represented that its loans were covered by insurance and surety bonds, which minimized the Company's risk on the loans. The representations in the press releases and Annual Reports were, according to the allegations of the complaint, materially false and misleading because the Company had loaned over $10 million to individuals, not businesses, who used the proceeds personally. In addition, according to the complaint, defendants are alleged to have failed to disclose to their insurers and sureties the nature of the personal loans and, as a result, the Company was jeopardizing its ability to collect under the policies and surety bonds in the case of default. On February 11, 2002, Barron's published an article detailing Actrade's questionable lending practices and its alleged misrepresentations and omissions to insurers and sureties. For example, the article recounts a $6.3 million loan-default by an individual that Actrade was attempting to recruit as a broker, and which an insurer and surety refused to cover on his default because they allegedly were led to believe by Actrade that the loan was for a business purpose when in fact the individual pocketed the funds. In reaction to the Barron's article, Actrade's stock price plummeted by 45%, falling to $13.75 per share on February 11, 2002, from a $24.89 per share close on February 8, 2002, which fell on a Friday.
If you purchased Actrade Financial Technologies, Ltd. securities between March 11, 1999 and February 11, 2002, you may be a member of the class and have until April 16, 2002 to move the court to become a lead plaintiff. To learn more about your rights and interests in this case 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, e-mail at info@sbclasslaw.com or visit our Website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca