LOS ANGELES, Dec. 4, 2002 (PRIMEZONE) -- Glancy & Binkow LLP -- the first firm to file a class action lawsuit against Liberate Technologies based upon recent events -- announces 12 days remaining to move to be a lead plaintiff in the shareholder lawsuit. All persons and institutions who purchased securities of Liberate Technologies ("Liberate" or the "Company") (Nasdaq:LBRTE) between September 20, 2001 and October 15, 2002, inclusive (the "Class Period"), may move the Court not later than December 16, 2002, to serve as lead plaintiff, however, you must meet certain legal requirements.
If you wish to receive a copy of the Complaint, discuss this action, or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy & Binkow LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9161 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
The Complaint charges Liberate and certain of its officers and directors with violations of sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and rule 10b-5 of the Securities and Exchange Commission. Among other things, plaintiff claims that defendants' material omissions and the dissemination of materially misleading statements concerning 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 throughout the Class Period defendants represented that Liberate Technologies quarterly statements were prepared in accordance with Generally Accepted Accounting Principles ("GAAP"). However, during the Class Period defendants, in violation of GAAP and the Company's own stated polices, inappropriately recognized certain software license fees, some of which, the Company has now admitted, should have been classified as deferred revenue. On October 15, 2002, after the market closed, defendants disclosed that the "timing and appropriateness" 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 as a result of the improper recognition of software license fees. Liberate Technologies' stock price plummeted 16% in after-hours trading as a result of the disclosure of the Company's accounting problems. The next day, October 16, 2002, fallout from the announcement continued as Liberate Technologies stock price plunged more than 22% in one day.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy & Binkow LLP, a law firm with significant experience in prosecuting shareholder lawsuits, and substantial expertise in actions involving corporate fraud.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.