HOUSTON, June 27, 2002 (PRIMEZONE) -- The Emerson Firm, a class action securities trial law firm, announced today that a class action has been filed in the United States District Court for the Northern District of Texas on behalf of purchasers of Halliburton Company ("Halliburton" or the "Company") (NYSE:HAL) publicly traded securities during the period between July 22, 1999 and May 28, 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 Halliburton violated Section 10(b) 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 July 22, 1999 and May 28, 2002. As alleged in the complaint, beginning in the fourth quarter of 1998, unbeknownst to the public, Halliburton materially changed its revenue recognition policy to recognize revenue on claims and change orders relating to cost-overruns which its clients had not approved. Previously, the Company would only recognize revenue on approved change orders or claims. The Complaint further alleges that the alteration of the Company's accounting policy and financial results reported as a result thereof throughout the Class Period were materially false and misleading and in violation of Generally Accepted Accounting Principles ("GAAP") because, among other things, the accounting change was not disclosed to the public or supported as the preferred accounting treatment in the Company's financial statements and because collection of the claims or change orders was not probable and the amounts involved could not be estimated reliably. As a result of these violations of GAAP, according to the complaint, the Company's quarterly and annual earnings press releases and financial reports filed with the Securities and Exchange Commission ("SEC") throughout the Class Period were materially false and misleading and artificially inflated the Company's reported revenues and earnings, thereby artificially inflating the price of Halliburton securities. On May 28, 2002, after the close of the market, Halliburton issued a press release announcing that the SEC is conducting an investigation into its accounting for cost overruns. In reaction to the press release, the price of Halliburton common stock dropped by 3.3% in one day on extremely heavy trading volume.
If you bought Halliburton publicly traded securities between July 22, 1999 and May 28, 2002 inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than August 2, 2002. If you are a member of this class, you can join this class action by contacting Tanya R. Autry in the Investor Relations Department of the 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 Houston, Texas and Little Rock, 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.
The Emerson Firm Investor Relations Department: Ms. Tanya R. 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