BALA CYNWYD, Pa., March 28, 2003 (PRIMEZONE) -- Law offices of Brodsky & Smith, LLC today announced that a securities class action lawsuit has been filed on behalf of shareholders who purchased the securities of InterCept, Inc. ("INTERCEPT" or the "Company") (Nasdaq:ICPT) between September 16, 2002 and January 9, 2003 (the "Class Period"). Defendants include Intercept, John W. Collins, G. Lynn Boggs, Scott Meyerhoff and Garrett M. Bender.
The Complaint alleges that defendants made material misrepresentations and/or omitted to make material disclosures during the Class Period due to their false assurances that the adult pornography internet portion of their merchant processing business was insignificant and due to their failure to disclose that VISA regulations implemented on November 1, 2002, which were targeted specifically to address risks of internet pornography card processing, had caused a material loss of business. Specifically, Plaintiff alleges that defendants knew by the time their fourth quarter earnings estimate was issued on November 4, 2002 that they would suffer a material loss of business because defendants were aware by November 1, 2002 which of their customers had met the deadline to become sponsored merchants under the new VISA regulations.
In a January 9, 2003 press release, INTERCEPT announced that it was revising its fourth quarter 2002 earnings per share estimate downward to $0.92 to $0.98 from its earlier, November 4, 2002, estimate of $1.11 to $1.15. The Company cited "reduced revenues in our merchant area result(ing) primarily from the iBill operations, which experienced a large loss of merchant customers following the implementation of a new credit card association rule in mid-November." Following these disclosures, shares of INTERCEPT declined from the Class Period high of $19.11 per share to close near $7.00 per share on January 10, 2003 on unusually high volume. By the close of trading on January 10, 2003, the stock had lost more than half of its value just prior to the disclosure.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased the stock listed above during the Class Period, you have certain rights. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice.
If you were a purchaser of this stock between September 16, 2002 and January 9, 2003 and want to discuss your legal rights, you may call the law office of Brodsky & Smith, LLC (Marc L. Ackerman, Esquire or Evan J. Smith, Esquire) at toll free 877.534.2590, who will, without obligation or cost to you, attempt to answer your questions. You may also contact us at Brodsky & Smith, LLC, Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, or by e-mail at clients@brodsky-smith.com. Please also feel free to visit our website at http://www.brodsky-smith.com to access a certification.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca