NEW YORK, May 23, 2002 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) has filed or is investigating the following class action suits on behalf or purchasers of the following securities: Gemstar-TV Guide International, Inc. (Nasdaq:GMST), Adelphia Communications Corporation (Nasdaq:ADLAC), Gerber Scientific, Inc. (NYSE:GRB) and LifeMinders.com (Nasdaq:LFMN).
Gemstar-TV Guide International, Inc. (Nasdaq:GMST)
According to the Complaint, Gemstar improperly recognized $107.6 million in licensing revenue from cable TV equipment maker Scientific-Atlanta, Inc. since 1999, although Scientific-Atlanta, Inc. stopped making payments to Gemstar beginning in 1999. Additionally, Gemstar improperly booked $20 million in revenue from advertising space it purportedly "sold" on its interactive program guides to a company called Fantasy Sports, although the transaction was actually a "barter arrangement" in which Gemstar received intellectual patents, not cash, from Fantasy Sports. As a result of Gemstar's misrepresentations and omissions about its financial results, the price of Gemstar's shares traded at artificially inflated prices. On April 1, 2002, when Gemstar filed its 10-K for the year ended December 31, 2001, it belatedly provided some disclosures of its improper revenue recognition practices. As a result of this disclosure, the price of Gemstar's shares fell as much as 37%, or $5.35, to $9.01. Shareholders who purchased Gemstar common stock between August 11, 1999 and April 1, 2002 (the "Class Period") have until June 3, 2002 to ask the Court to appoint them as one of the lead plaintiffs for the Class.
Adelphia Communications Corporation (Nasdaq:ADLAC)
According to the Complaint, Adelphia manipulated its financial statements and misrepresented its earnings and financial results, thereby artificially inflating Adelphia's stock price by improper accounting practices. On March 27, 2002, Adelphia disclosed that in conjunction with its fiscal 2001 financial results, the Company was liable for at least $2.3 billion in debt related to the co-borrowing guarantees entered into with Highland Holdings, a third party controlled by Adelphia. Following this disclosure, the price of Adelphia common stock fell to $16.70 per share, a loss of approximately 20% of the value of the stock from the previous trading day. During the Class Period, Adelphia's shares traded as high as $45 per share. Shareholders who purchased Adelphia common stock between April 2, 2001 and March 26, 2002 (the "Class Period") have until June 3, 2002 to ask the Court to appoint them as one of the lead plaintiffs for the Class.
Gerber Scientific, Inc. (NYSE:GRB)
Gerber Scientific, Inc. ("Gerber") allegedly issued a series of false and misleading statements regarding Gerber's quarterly and annual financial performance which inflated the price of Gerber's securities during the period May 27, 1999 through April 12, 2002, inclusive (the "Class Period"). On April 15, 2002, before the market opened, Gerber announced that it expected to take a $12 million pre-tax charge in its fiscal fourth quarter. In addition, Gerber announced that, in response to an investigation by the Securities & Exchange Commission into its inventory and reserve accounting practices, the Company was conducting an internal review of its financial reporting for the period January 1, 1998 through April 30, 2002. Gerber further stated that its investigation is ongoing and once it has been completed, the Company will likely restate its financial results for the appropriate periods. Shareholders who purchased Gerber securities during the Class Period have until June 17, 2002 to ask the Court to appoint them as one of the lead plaintiffs for the Class.
Merrill Lynch (NYSE:MER) on behalf of purchasers of LifeMinders.com (Nasdaq:LFMN)
Merrill Lynch & Co., Inc. and its former Internet research analyst Henry M. Blodget issued false and misleading analyst reports about LifeMinders.com (Nasdaq:LFMN). Defendants' initiation of coverage and its rating and reports on LifeMinders.com were not based on independent, objective analyses but instead were biased and tilted in the Company's favor to enable Merrill Lynch to maintain and enhance its lucrative investment banking relationship with this important client. The Complaint charges that defendants' positive statements about LifeMinders.com were inconsistent with their own contemporaneous, private negative assessments. As a result of defendants' false and misleading statements, the market price of LifeMinders.com common stock was artificially inflated or stabilized during the period from September 28, 2000 through May 11, 2001, inclusive (the "Class Period").
If you purchased the common stock of any of the above companies during their respective Class Period and wish to discuss these actions or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca