NEW YORK, Dec. 9, 2002 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) has filed a class action lawsuit in the United States District Court for the Southern District of New York against 800America.com ("800America" or the "Company") (Other OTC:ACCO) and three individual defendants on behalf of all persons or entities who purchased or otherwise acquired the securities of 800America during the period between January 17, 2001 and November 13, 2002 (the "Class Period"). The lawsuit charges that defendants violated Sections 10(b) of the Securities Exchange Act of 1934 by engaging in a massive, multifaceted scheme to artificially inflate the value of 800America stock by "cooking" its books and records, and by issuing public filings that grossly distorted the Company's true state of affairs.
The Complaint alleges that, throughout the Class Period, defendants engaged in fraudulent actions which included, among other things, 1) reporting millions of dollars in fictitious earnings, revenues, expenses and assets, deliberately concealed by defendants' creation of phony bank statements, checks, invoices and a general ledger, which they supplied to 800America's auditor; 2) the misappropriation and looting of substantial assets of the Company by defendants David Elie Rabi ("Rabi") and Tillie Ruth Steeples ("Steeples) through transfers of funds from 800America accounts to accounts controlled by Rabi and/or Staples; 3) the issuance of a press release falsely denying Rabi's criminal past and failing to disclose that Steeples was a control person of the Company; and 4) the filing of a 10-KSB which listed as officers and/or directors or "significant employees" several individuals who had either left the Company or could not be located by the Company.
The Complaint further alleges that 800America maintained two separate sets of books in furtherance of their fraud, in which virtually all of its reported revenues in fiscal years 2001 and 2002 were fictitious. In addition, 800America reported approximately $13.2 million in cash assets for fiscal year 2001-supported by a phony bank statement provided to the Company's auditor reflecting approximately $12.67 million in cash-while the actual bank statement reflected that such account never contained more than $640.66 for that entire period.
On November 13, 2002, the Securities & Exchange Commission ("SEC") filed a civil action against 800America, Rabi and Steeples in the Southern District of New York, alleging that the Company falsified virtually all of its reported revenue, concealed the criminal histories of Rabi and Steeples, and otherwise perpetrated a massive fraud against investors. Both Rabi and Steeples were arrested on criminal charges in connection with this fraud.
If you purchased the securities of 800America during the Class Period, you have until February 7, 2002 to ask the Court to appoint you as lead plaintiff for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, or if you would like to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz firm, which has offices in New York and Chicago, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.