NEW YORK, July 3, 2002 (PRIMEZONE) -- Please take notice that the law firm of Kirby McInerney & Squire, LLP has commenced a class action lawsuit in the United States District Court for the Southern District of New York on behalf of all purchasers of Edison Schools Inc. (Nasdaq:EDSN) common stock during the period from November 10, 1999 through May 14, 2002 (the "Class Period").
A copy of the complaint is available from the Court or from Kirby McInerney & Squire. Please visit our website, which offers summary and detailed information concerning the case at www.kmslaw.com/new_cases/edison/edison.htm, or contact us by phone at (888) 529-4787 or by email at obraun@kmslaw.com.
The action charges Edison Schools Inc. ("Edison"), Edison's auditor PricewaterhouseCoopers LLP ("PWC"), and Edison's chief executive officer and chief financial officer, with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The violations, as the complaint alleges, stem from the materially false and misleading statements made by the defendants during the class period that, as detailed below: (i) misrepresented Edison's business, operations and financial performance; and (ii) caused Edison' stock to trade at artificially-inflated prices.
The complaint alleges that, during the class period, Edison misrepresented and inflated its publicly reported revenues, and misrepresented and deflated its publicly reported liabilities. As the complaint alleges, investigative reporting on February 13, 2002 first apprized the investing public of the former, and an SEC cease and desist order on May 14, 2002 prompted Edison to admit to the latter. As the complaint alleges, Edison Schools over-reported revenues by recording as revenue monies paid for teachers' salaries, student transportation and utility bills that were remitted directly by Edison's clients (i.e., school districts). Although Edison never actually received these monies, Edison recorded them as revenue in its financial statements. Thus, Edison was able to boast revenue growth in its financial statements disseminated to the investing public. When this information was belatedly disclosed to the market on February 13, 2002, the following day, the price of Edison's' shares dropped as low as $12.75. On May 14, 2002, Edison, in a settlement with the SEC, agreed to restate its financial statements so as to correctly account for certain liabilities that had not previously been reported. The following day, Edison's shares traded as low as $2.50 per share.
Plaintiffs are represented by Kirby McInerney & Squire, LLP, which specializes in complex litigation, including securities class actions. The firm has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and its achievements and quality of service have been chronicled in numerous published decisions. More information about the firm, class actions in general or about the role of the lead plaintiff in a securities class action can be obtained through Kirby McInerney & Squire's website at www.kmslaw.com.
If you are a member of the class described above, you may, no later than July 14, 2002, move the Court to serve as lead plaintiff of the class, if you so choose, pursuant to the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), 15 U.S.C. section 78u-4(a). A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to seek appointment as a lead plaintiff. For more information about the case, its claims, and your rights, please contact:
Ira M. Press, Esq. Orie Braun KIRBY McINERNEY & SQUIRE, LLP 830 Third Avenue, 10th Floor New York, New York 10022 Telephone: (212) 317-2300 or Toll Free (888) 529-4787 E-Mail: obraun@kmslaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca