NEW YORK, Aug. 28, 2002 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of The Interpublic Group of Companies, Inc. ("Interpublic" or the "Company") (NYSE:IPG) between October 28, 1997 and August 13, 2002, inclusive (the "Class Period"). A copy of the complaint filed in this action can be viewed on the firm's website at www.faruqilaw.com
The complaint alleges that defendants 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 material misrepresentations to the market throughout the Class Period, thereby artificially inflating the price of Interpublic securities. Specifically, the complaint charges that defendants issued numerous statements and filed quarterly and annual reports with the SEC which described the Company's increasing net income and financial performance. As alleged in the complaint, these statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts: (i) that, throughout the Class Period, the Company was overstating its net income by failing to expense certain charges which should have been expensed; (ii) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (iii) that as a result, the value of the Company's net income and financial results were materially overstated at all relevant times.
On August 13, 2002, however, the last day of the Class Period, the Company announced, among other things, that it had "identified $68.5 million of charges, principally in Europe, which had not been properly expensed," which will cause the company to restate its previously issued financial statements going back to 1997 and prior.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Interpublic securities between October 28, 1997 and August 13, 2002, excluding defendants and their affiliates.
If you wish to obtain information concerning joining this action you can do so under the "Join Lawsuit" section of our website at www.faruqilaw.com
If you purchased Interpublic securities during the Class Period, you may, not later than October 14, 2002, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
ANTHONY VOZZOLO, ESQ. FARUQI & FARUQI, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 e-mail: Avozzolo@faruqilaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca