PHILADELPHIA, June 14, 2002 (PRIMEZONE) -- On May 21, 2002, the law firm of Berger & Montague, P.C. (http://www.bergermontague.com) filed a class action suit against Seitel, Inc. ("Seitel" or the "Company") (NYSE:SEI) and certain of its principal officers and directors in the United States District Court for the Southern District of Texas on behalf of all persons or entities who purchased the publicly traded securities of Seitel between May 5, 2000 and 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 year fiscal 2000 and the first three quarters of fiscal 2001 by improperly recognizing revenues. Most of the improper revenue, the complaint alleges, 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 and prior to the customers determining which data they intended to license. The practice ran afoul of Generally Accepted Accounting Principles and artificially inflated Seitel's stock price during the Class Period, the complaint says.
The complaint 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, while in possession of undisclosed adverse information about Seitel, engaged in over $10.6 million of illegal insider stock sales during the Class Period.
On April 1, 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.
After Seitel further detailed the restatements on May 3, 2002, the company's stock price plunged to $5.16 per share by the next trading day, more than 77% below the Class Period high of $23.03 per share, the complaint says.
If you purchased Seitel securities during the period from May 5, 2000 through May 3, 2002, inclusive, you may, no later than July 1, 2002, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members 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 Berger & Montague, P.C. at investorprotect@bm.net for a more thorough explanation of the Lead Plaintiff selection process.
The law firm of Berger & Montague, P.C. has over 50 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries of several billion dollars to investors. The firm is currently representing investors as lead counsel in actions against Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office Solutions, Inc. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example:
"Class counsel did a remarkable job in representing the class interests." In Re: IKON Offices Solutions Securities Litigation. Civil Action No. 98-4286(E.D.Pa.) (partial settlement for $111 million approved May, 2000).
"...(Y)ou have acted the way lawyers at their best ought to act. And I have had a lot of cases...in 15 years now as a judge and I cannot recall a significant case where I felt people were better represented than they are here ... I would say this has been the best representation that I have seen." In Re: Waste Management, Inc. Securities Litigation, Civil Action No. 97-C 7709 (N.D. Ill.) (settled in 1999 for $220 million).
If you purchased Seitel securities during the Class Period, please visit our website at www.bergermontague.com to view the complaint and join the class action or if you have any questions concerning this notice or your rights with respect to this matter, please contact:
Sherrie R. Savett, Esquire
Stuart J. Guber, Esquire
Kimberly A. Walker, Investor Relations Manager
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
Phone: 888-891-2289 or 215-875-3000
Fax: 215-875-5715
Website: http://www.bergermontague.com
e-mail: InvestorProtect@bm.net
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca