NEW YORK, Jan. 30, 2003 (PRIMEZONE) -- Please take notice that the law firm of Kirby McInerney & Squire, LLP has commenced a class action lawsuit in the United States District Court for the Northern District of Texas on behalf of all purchasers of AmeriCredit Corp. common stock (NYSE:ACF) during the period from April 14, 1999 through January 16, 2003 (the "Class Period"). The action seeks to recover losses suffered by such investors.
A copy of the complaint is available from the Court or from Kirby McInerney & Squire. Please visit our website, which offers summary and detailed information concerning the case at www.kmslaw.com/new_cases/americredit/americredit.htm, or contact us by phone at (888) 529-4787 or by email at obraun@kmslaw.com.
The complaint asserts claims for violation of Section 10(b) and 20(a) of the Securities and Exchange Act of 1934 against AmeriCredit, as well as its Chief Executive and Chief Financial Officers. The alleged violations, according to the complaint, stem from materially false and misleading statements made by the defendants during the Class Period that, as detailed below: (i) materially misrepresented AmeriCredit's operational and financial performance; thereby (ii) causing AmeriCredit stock to trade at artificially-inflated prices.
The complaint charges that AmeriCredit -- a national consumer finance company specializing in purchasing, securitizing and servicing automobile loans -- was, during the Class Period, improperly deferring delinquent loans in order to avoid the proper accounting and financial reporting consequences of consumer defaults. By deferring write-offs that GAAP would have required, AmeriCredit was able to report financial results much higher than those GAAP dictated. These inflated financial results, in turn, caused AmeriCredit shares to trade at prices artificially inflated by AmeriCredit's misleading reported financial results. AmeriCredit took advantage of its share price inflation by raising $500 million through a secondary stock offering in September 2002, while AmeriCredit's CEO and CFO received $53 million from their Class Period sales of AmeriCredit shares at inflated prices.
As the complaint charges, on January 16, 2003, AmeriCredit cleaned its books and recognized a backlog of delinquent loans, resulting in disastrous financial results including a 33% revenue shortfall and a loss three times larger than expected. AmeriCredit shares -- which had already fallen from $80 to $8 per share -- lost half their remaining value.
Plaintiffs are represented by Kirby McInerney & Squire, LLP, which specializes in complex litigation, including securities class actions. The firm has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and its achievements and quality of service have been chronicled in numerous published decisions. More information about the firm, class actions in general or about the role of the lead plaintiff in a securities class action can be obtained through Kirby McInerney & Squire's website at www.kmslaw.com.
If you are a member of the class described above, you may, no later than March 17, 2003, move the Court to serve as lead plaintiff of the class, if you so choose, pursuant to the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), 15 U.S.C. section 78u-4(a). A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. 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 seek appointment as a lead plaintiff. For more information about the case, its claims, and your rights, please contact:
Ira M. Press, Esq. Ori Braun KIRBY McINERNEY & SQUIRE, LLP 830 Third Avenue, 10th Floor New York, New York 10022 Telephone: (212) 317-2300 or Toll Free (888) 529-4787 E-Mail: obraun@kmslaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca