PHILADELPHIA, May 10, 2002 (PRIMEZONE) -- Spector, Roseman & Kodroff, P.C. announces that a class action suit on behalf of purchasers of the securities of Seitel, Inc. (NYSE:SEI) and several top officers of the Company has been filed in the U.S. District Court for the Southern District of Texas. The plaintiff seeks damages for violations of federal securities laws on behalf of all investors who bought Seitel common stock from May 5, 2000 through May 3, 2002 (the Class Period).
According to the complaint, Houston-based Seitel and the individual defendants materially misrepresented the company's financial results for 2000 and 2001 by improperly recognizing revenues. Most of the improper revenue, the complaint says, was attributable to Seitel's undisclosed practice of recording revenue for the licensing of its seismic data and other geophysical information before delivering data to customers. The practice was in violation of Generally Accepted Accounting Principles and artificially inflated Seitel's stock price during the Class Period, the complaint says.
The complaint further alleges that the defendants were motivated to commit the accounting fraud in order to earn commissions and bonuses, which were tied to the company's revenues and earnings. The complaint claims the defendants had nearly $10 million of insider stock sales during the Class Period.
On April 1, 2000, Seitel announced that it was restating its financial results for the year 2000 and the first three quarters of 2001. The restatement reduced reported revenue by 15% in 2000 and 30% during the first three quarters of 2001. It also turned what had purportedly been profits during those periods into losses, the lawsuit states. On May 3, 2002, when the Company provided details of the restatements, the company's stock price dropped to $5.65 per share, more than 75% below the Class Period high of $22.72 per share.
If you bought Seitel securities between May 5, 2000 and May 3, 2002, you may, no later than July 1, 2002, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative chosen by the Court that acts on behalf of other class members behalf in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed lead plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in Seitel securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the lead plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the lead plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action, please visit http://www.srk-law.com/recentsecuritiesfilings.asp. To discuss this action or if you have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via E-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania and San Diego, California, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca