NEW YORK, Feb. 28, 2003 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Northern District of Texas, on behalf of all purchasers of Blockbuster Inc. ("Blockbuster" or the "Company") (NYSE:BBI) securities between April 24, 2002 and December 17, 2002, inclusive (the "Class Period"). A copy of the complaint filed in this action will be available on the firm's website at www.faruqilaw.com.
The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading press releases concerning Blockbuster's financial results and business prospects. Specifically, the complaint alleges defendants failed to disclose and/or misrepresented the following adverse facts: (a) that the Company was being negatively affected by a decline in rental game margins; (b) that the Company's fiscal 2003 projections did not include Video-on-Demand impact on the Company's revenue and income; (c) that the Company's core rental business was eroding due to declining DVD purchase prices; and (d) as a result, defendants did not and could not have genuinely believed their projections for the Company's financial results for fiscal 2002 and beyond were accurate when made. As a result of these false statements, Blockbuster's stock traded at artificially high levels during the Class Period allowing the individual defendants to sell more than $13 million of their own shares. On December 18, 2002, however, Blockbuster shocked the market when it revealed that its revenue would be a fraction of its previous forecast, resulting in a decline of the price of the Company's stock of more than 25% in one day.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Blockbuster securities between April 24, 2002 and December 17, 2002, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the "Join Lawsuit" section of our website at www.faruqilaw.com.
If you purchased Blockbuster securities during the Class Period, you may, not later than April 14, 2003, move the court to serve as lead plaintiff of the class. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
ANTHONY VOZZOLO, ESQ. FARUQI & FARUQI, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 e-mail: AVozzolo@faruqilaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.