LITTLE ROCK, Ark., June 19, 2002 (PRIMEZONE) -- The Emerson Firm, a securities class action trial law firm with offices in Houston, Texas and Little Rock, Arkansas, announced today that a class action has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Edison Schools, Inc. ("Edison Schools" or the "Company") (Nasdaq:EDSN) publicly traded securities during the period between November 11, 1999 and May 14, 2002, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be obtained from the Firm.
The complaint charges that defendants Edison Schools, Chris Whittle (President and CEO), Adam Feild (Chief Financial Officer) and Christopher Cerf (Chief Operating Officer) violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between November 11, 1999 and May 14, 2002. Throughout the Class Period, Edison Schools issued numerous quarterly press releases reporting the Company's supposedly growing revenue stream and increasing income. Such representations were repeated in reports filed with the Securities and Exchange Commission ("SEC"). According to the complaint, these representations were materially false and misleading because Edison Schools was improperly recognizing revenue by recognizing as revenue monies that were remitted to their clients, comprised of school districts and charter schools, even though the Company did not receive this money. Accordingly, the complaint charges, the Company's revenues and other financial data reported throughout the Class Period were materially false and misleading. On May 14, 2002, Edison Schools revealed that it had been the subject of an SEC investigation and has entered into a settlement with the SEC under which it agreed to reclassify the revenues that the Company had reported for numerous quarters. At the time of the disclosure, the common stock of Edison Schools was trading at $1.50 to $2 per share, after reaching a Class Period high of $36.75 per share.
If you bought Edison Schools publicly traded securities between November 11, 1999 and May 14, 2002, inclusive and you wish to serve as lead plaintiff, you must move the Court no later than July 15, 2002. If you are a member of this class, you can join this class action by contacting Ms. Tanya Autry at the Investor Relations Department of The Emerson Firm. Any member of the purported class may move the Court to serve as lead plaintiff through The Emerson Firm or other counsel of their choice.
The Emerson Firm has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Texas and Arkansas, but represents investors throughout the nation. 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 or e-mail the Firm.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.