BALA CYNWYD, Pa., Dec. 3, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the District of Nebraska on behalf of all purchasers of the common stock of Transaction Systems Architects, Inc. (Nasdaq:TSAIE) ("the Company") between January 21, 1999 and November 18, 2002, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The Complaint charges that during the Class Period, Transaction Systems Architects and certain of its officers and directors issued and/or failed to correct false and misleading financial statements and press releases concerning the Company's publicly reported revenues and earnings directed to the investing public. Specifically, (i) the Company's software license revenues and net income for 1999, 2000, 2001 and for the ninth-month period ended June 30, 2002 have been seriously overstated; (ii) the Company lacked sufficient internal controls and therefore was unable to understand its true financial standing; (iii) and because of these problems, the value of the Company's balance sheet and income statement were materially overstated at all relevant times.
On August 14, 2002, the Company shocked the market and revealed that management was reviewing several transactions involving the Company's customers that occurred during fiscal 1999 and 2000, to determine whether they had been accounted for appropriately. The Company announced that it would conduct a re-audit of the financial statements for fiscal years 1999, 2000 and 2001. In response to the news, the Company's shares plummeted more than 20%, falling $2.22 per share (from the previous day's closing price of $10.72 per share), to $8.50 per share on August 15, 2002.
On November 19, 2002, the Company confirmed that in the course of the review of its financial statements, the Company identified certain accounting adjustments that will result in the restatements of the Company's financial statements for fiscal 1999, 2000 and 2001, as well as the restatements of previously announced 2002 quarterly results because it improperly recognized revenue in conjunction with its software licensing arrangements.
As a result, previously reported Company's software license revenues and net income will decrease substantially in fiscal 1999, 2000 and 2001. The Company said that these adjustments may be material. Further, the Company announced that as a result of these adjustments, it is not possible to complete the re-audit prior to the November 29, 2002, deadline allowed by NASDAQ. The Company requested an extension from NASDAQ until December 31, 2002 to complete the re-audit process.
After the market digested the November 19, 2002 announcement, TSA's shares fell to a low of $ 6.50, closing on November 20th at $7.35.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, LLP, which prosecutes class actions on behalf of investors and shareholders. For more information on Schiffrin & Barroway, or to sign-up to participate in this action online, please visit http://www.sbclasslaw.com/cgi/signup.cgi.
If you are a member of the class described above, you may, not later than January 31, 2003, 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.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca