BALA CYNWYD, Pa., July 10, 2002 (PRIMEZONE) -- A pending class action charges Mutual Risk Management Ltd. ("Mutual Risk") (OTCBB:MLRME) with misleading investors about its business and financial condition according to the law firm of Schiffrin & Barroway, LLP.
The complaint was filed in the U.S. District Court for the Southern District of California (02-CV-1244). Plaintiff seeks damages for violations of the federal securities laws on behalf of all investors who purchased Mutual Risk Management Ltd. securities between February 16, 2000 through April 2, 2002 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Mutual Risk Management Ltd. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint alleges that the California-based Mutual Risk Management Ltd. and its most senior officers and directors disseminated materially false financial statements for each of Mutual Risk's interim quarters during that period and for the years ended December 31, 2000 and 2001, which materially overstated the Company's cumulative revenues and its net income. As a result of the materially false and misleading statements and omissions described herein, Mutual Risk stock was inflated to an all-time high of $23.75 per share.
Mutual Risk also represented in each of its quarterly and annual filings with the SEC that the financial statements included therein had "been prepared in conformity with generally accepted accounting principles" and "reflected all adjustments necessary for a fair presentation of results for such periods." In reality, each of Mutual Risk's financial statements violated GAAP by understating reserves for potential claims. The financial results included in Mutual Risk's SEC filings during the Class Period were thereby rendered materially false and misleading.
Then, on April 2, 2002, the Company admitted that even its disastrous Q4 2001 results (announced February 19, 2002) were not accurate, putting the Company's shares into another "free fall," trading at just pennies per share following the April 2, 2002 admission.
If you purchased Mutual Risk Management Ltd. securities between February 16, 2000 through April 2, 2002, you may be a member of the class and have until August 6, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.