BALA CYNWYD, Pa., Feb. 14, 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 Northern District of Texas, Dallas Division on behalf of all purchasers of the common stock of Carreker Corp. ("Carreker") or (the "Company") (Nasdaq:CANIE) between May 20, 1998 and December 10, 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 Carreker Corp. with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that throughout the Class Period, Carreker filed financial statements with the SEC which represented that the Company was consistently delivering numerous consecutive quarters of record, double-digit growth, which the Company attributed to the strong demand for its products and Carreker's business model. In addition, according to the complaint, the Company expressly assured investors of its "dedication to transparent reporting practices" and highlighted the supposed "quality and integrity of (Carreker's) accounting and corporate governance practices." These statements were materially false and misleading, according to the complaint, because they failed to disclose that the Company had been improperly recognizing revenues throughout the Class Period, thereby artificially inflating its revenues, income and earnings per share. On December 10, 2002, the Company issued a press release announcing that it was investigating whether revenues were improperly recognized by being booked at once instead of ratably over a period of time, as required by applicable generally accepted accounting principles. This belated disclosure severely and negatively impacted Carreker's stock price, causing it to fall by 22.6% in one day on extremely heavy trading volume, from a December 9 close of $5.08 per share to close at $3.93 per share on December 10. Subsequently, the SEC initiated an investigation, which is ongoing, into the Company's accounting practices. On January 28, 2003, the Company announced that it will be restating the financial reports it has filed since 1998.
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 April 11, 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