NEW YORK, Oct. 23, 2002 (PRIMEZONE) -- The law firm of Wechsler Harwood LLP announces that a class action has been commenced in the United States District Court for the Northern District of California on behalf all persons who purchased or acquired Liberate Technologies (Nasdaq:LBRT) ("Liberate" or the "Company") securities between the period of September 20, 2001 and October 15, 2002, inclusive (the "Class Period") against defendants Liberate and certain of its officers and directors.
The Complaint charges Liberate and certain of its officers and directors with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements regarding the nature of Liberate's revenue and earnings caused Liberate's stock price to become artificially inflated, inflicting damages on investors. The Complaint alleges that during the Class Period, defendants artificially inflated revenue by recognizing certain software license fees in violation of GAAP and the Company's own stated policies. On October 15, 2002, after the market closed, defendants disclosed that the "appropriateness and timing" of certain software license fees had been called into question and that the Company would likely restate its fourth quarter and fiscal year 2002 financial results. Liberate's stock price plummeted 16% in after-hours trading as a result of the disclosure of its accounting problems. On the next day, October 16, 2002, the fallout from the announcement continued as Liberate stock dropped more than 22% from the previous day's close.
If you are a member of the Class described above, and if you meet certain other legal requirements, you may, no later than December 16, 2002, move the Court to serve as a lead plaintiff. 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." 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).
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 Ramon Pinon, Wechsler Harwood Shareholder Relations Department: rpinon@whesq.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca