CHICAGO, Oct. 10, 2002 (PRIMEZONE) -- The deadline for purchasers of Interpublic Group of Companies, Inc. ("Interpublic" or the "Company") (NYSE:IPG) publicly traded securities to move for lead plaintiff in a securities fraud class action recently brought against the Company is rapidly approaching. If you purchased Interpublic securities between October 28, 1997 and August 13, 2002, inclusive (the "Class Period"), and wish to be a lead plaintiff in the case, you must move to serve as lead plaintiff by filing a motion in the United States District Court, Southern District of New York, by October 14, 2002.
According to the Complaint filed by Much Shelist, during the Class Period, Interpublic misled investors by issuing false and misleading statements and failing to disclose material facts about the Company's business. These alleged misstatements had the effect of artificially inflating the price of Interpublic securities.
If you wish to discuss your rights and interests, have questions regarding this notice or have information relevant to the lawsuit, you may contact Carol V. Gilden or Michael E. Moskovitz at Much Shelist Freed Denenberg Ament & Rubenstein, P.C., by calling a toll-free number 1-800-470-6824, or by sending an e-mail to investorhelp@muchshelist.com. Your e-mail should refer to Interpublic.
The complaint alleges 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, among others: (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 5, 2002, Interpublic announced that it would be rescheduling the release of its second quarter 2002 earnings "to accommodate the Audit Committee of its Board of Directors," which was interpreted by the market to potentially involve the Company's accounting. In response to the uncertainty surrounding defendants' announcement, investors sold off shares of Interpublic, which dropped $4.69 per share, or 23.8%, to close at $14.99 per share.
On August 13, 2002, the last day of the Class Period, the nature of the Company's delay of its second quarter 2002 earnings release became evident when 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 all those who purchased Interpublic securities during the Class Period (October 28, 1997 through August 13, 2002). If you purchased Interpublic securities the Class Period and either lost money on the transactions or still hold the common stock, you may, if you meet certain other legal requirements, file a motion to serve as a lead plaintiff. You must file your motion no later than October 14, 2002.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. 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 serve as a lead plaintiff. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States. The firm has successfully prosecuted cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion. Please visit the Much Shelist website for more information about the firm (www.muchshelist.com).
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca