BALA CYNWYD, Pa., May 13, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of Texas on behalf of all purchasers of the common stock of Seitel, Inc. (NYSE:SEI) ("Seitel" or the "Company") from July 13, 2000 and April 1, 2002, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges Seitel, Inc. and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint charges that Seitel and certain of its senior officers 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 ("GAAP"). Seitel also acknowledged that the May 3, 2002 disclosures were a result of its conversations with the SEC.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, LLP, which has significant experience and expertise prosecuting class actions on behalf of investors and shareholders. For more information on Schiffrin & Barroway, or to sign-up to participate in this action online, please visit http://www.sbclasslaw.com/cgi/signup.cgi.
If you are a member of the class described above, you may, not later than July 1, 2002, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca