BALA CYNWYD, Pa., Jan. 23, 2003 (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 Utah, Central Division, on behalf of all purchasers of the common stock of ClearOne Communications, Inc. ("ClearOne" or the "Company") (Nasdaq:CLRO) between April 17, 2001, and January 14, 2003, inclusive (the "Class Period"). Specifically, this Class Period includes the following members:
a. All purchasers of Gentner Communications' common stock from April 17, 2001 through January 1, 2002, trading under the ticker symbol GTNR.
b. All purchasers of ClearOne Communications' common stock from January 2, 2002 through March 14, 2002, trading under the ticker symbol GTNR.
c. All purchasers of ClearOne Communications' stock from March 15, 2002 when it began trading under the ticker symbol CLRO through January 14, 2003.
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 ClearOne Communications, Inc. and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that defendants' material omissions and the dissemination of materially false and misleading statements concerning ClearOne's revenue and earnings caused ClearOne's stock price to become artificially inflated, inflicting damages on investors. The Complaint alleges that (i) the Company lacked sufficient internal controls and therefore was unable to understand its true financial standing, including the fact that ClearOne had inadequate and improper internal and financial controls and accounting practices; (ii) the Company had improper accounting of the revenues, income and accounts receivables by recording certain transaction with its distributors and resellers as sales when in fact the transactions did not meet the requirements of Generally Accepted Accounting Principles ("GAAP") for sales; (iii); the Company's improper treatment of its transactions and revenue recognition policies resulted in material overstatement of revenue, income and accounts receivable at all relevant times. The scheme deceived the investing public regarding ClearOne's business, operations and management and the intrinsic value of the Company's shares at artificially inflated prices.
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 March 17, 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.