SAN DIEGO, Nov. 27, 2002 (PRIMEZONE) -- The law firm of Robbins Umeda & Fink, LLP announces that a class action lawsuit was filed on November 26, 2002, on behalf of purchasers of the securities of Answerthink, Inc. ("Answerthink" or the "Company") (Nasdaq:ANSR) between October 17, 2000 and April 25, 2002, inclusive.
The action is pending in the United States District Court, Southern District of Florida, located at 301 N. Miami Avenue, Miami, Florida, against defendants Answerthink, John F. Brennan, Ted A. Fernandez ("Fernandez"), Allan R. Frank ("Frank"), Edmund R. Miller, William Kessinger and Bruce Rauner. If you are a member of this class, you can join this class action online at http://www.ruflaw.com/join.html.
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. As alleged in the complaint, throughout the Class Period, defendants issues a series of false and misleading statements announcing "record" financial results. In violation of Generally Accepted Accounting Principles ("GAAP"), the complaint alleges, defendants failed to disclose that the "record" results included revenues recognized from transactions with related parties who were near-bankruptcy and lacked the financial means to finalize the sales. Specifically, in order to boost reported revenues and earnings during the third and fourth quarters of 2000, the Company recognized approximately $16.7 million of revenue in connection with various transactions with related parties who were either facing imminent bankruptcy or were otherwise unable to survive as a going concern and remit the full $16.7 million as promised. As a result, the complaint alleges, defendants were able to report artificially inflated results which permitted defendants Fernandez and Frank to receive performance-based bonuses and allowed certain of the defendants to sell stock at inflated prices. Ultimately, more than $6 million of receivables and worthless stock in one of the related party companies, which was received as partial payment, was written off through a charge to earnings.
On February 7, 2002, when defendants were no longer able to include these illusory revenues in their financial results, the Company reported a huge drop in revenues. As a result, Answerthink investors who purchased stock in reliance on the integrity of defendants' statements and publicly filed financial reports have sustained tremendous losses. Answerthink stock, which traded at $18 per share on October 17, 2000, has dramatically declined and is currently trading at only $2.05 per share as of November 26, 2002.
If you bought the securities of Answerthink between October 17, 2000 and April 25, 2002, you may, no later than January 13, 2003 request that the Court appoint you as 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." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Robbins Umeda & Fink, LLP, or other counsel of your choice, to serve as your counsel in this action.
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 attorney:
ROBBINS UMEDA & FINK, LLP Jeffrey P. Fink 1010 Second Ave., Suite 2360 San Diego, CA 92101 Toll Free No. 800-350-6003 Email: fink@ruflaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.