HOUSTON, May 10, 2002 (PRIMEZONE) -- The Emerson Firm, a securities law firm with offices in Houston, announced today that it has charged Seitel, Inc. ("Seitel") (NYSE:SEI) and certain of its senior officers with violations of the federal securities laws, in a class action lawsuit brought in the United States District Court for the Southern District of Texas -- Houston Division. The lawsuit is on behalf of all persons who purchased Seitel common stock on the open market during the period July 13, 2000 through April 1, 2002, inclusive (the "Class Period").
The complaint alleges that defendants improperly recognized revenue and net income during fiscal years 2000 and 2001 by recording revenue on data licensing contracts, prior to specific data being selected by and delivered to its customers. The complaint further alleges that top insiders profited illegally from insider trading in Seitel's common stock and earned exorbitant commissions and bonuses that were tied to reported revenue and earnings. During the Class Period and as a result of defendants' misrepresentations, shares of Seitel common stock traded as high as $23.03 per share. Seitel currently trades, after having restated its false financial statements, at approximately $8.00 per share.
On May 3, 2002, Seitel issued a press release acknowledging that the financial statements it issued during the class period were not prepared in conformity with generally accepted accounting principles. Seitel also acknowledged that the May 3, 2002 disclosures were a result of its conversations with the SEC.
Any member of the proposed class who desires to be appointed lead plaintiff in this action must file a motion with the Court no later than July 1, 2002. Class members must meet certain legal requirements to serve as a lead plaintiff. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call toll-free or e-mail the Firm.
The Emerson Firm has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Houston, Texas where this case is pending and also in Arkansas, but represents investors throughout the nation.
THE EMERSON FIRM
Investor Relations Department:
Ms. Tanya Autry
P.O. Box 25336
Little Rock, AR 72221-5336
Toll Free: 1-800-663-9817
E-mail: tanya.autry@worldnet.att.net
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.