MILWAUKEE, APRIL 28, 2003(PRIMEZONE) -- The Law Firm of Ademi & O'Reilly, LLP announced that it filed a class action lawsuit on April 9, 2003 in the United States District Court for the Southern District of New York, located at 500 Pearl Street, NY, NY 10007, on behalf of purchasers of Core Laboratories, N.V. (NYSE:CLB) "Core Laboratories" or the "Company") common stock during the period between May 6, 2002, and March 31, 2003, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at http://www.ademilaw.com/cases/Core.pdf.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between May 6, 2002, and March 31, 2003, thereby artificially inflating the price of Core common stock. Throughout the Class Period, as alleged in the Complaint, defendants issued numerous statements and filed quarterly reports with the SEC, which described the Company's increasing financial performance. The Complaint alleges that these statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (i) that the Company had materially overstated its net income and earnings per share; (ii) that the Company had overstated its ability to collect on certain accounts receivable; (iii) that the Company had improperly delayed the booking of expenses and foreign exchange translation losses from certain field locations; (iv) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (v) that as a result, the value of the Company's net income and financial results was materially overstated at all relevant times.
On March 31, 2003, after the markets had closed trading for the day, the Company shocked the market by announcing that it would be restating its financial results for prior 2002 quarterly operating results because of: (a) the issuance of duplicate invoices in the Company's Mexico operations; (b) the need for higher provisions for doubtful accounts receivables; (c) the need for timely booking of expenses and foreign exchange translation losses from certain field locations; (d) changes in the estimated life of certain assets; and (e) and consolidation costs of two Nigerian offices. Following this announcement, shares of Core common stock fell $1.31 per share, or more than 12.5%, to close at $9.09 per share, on volume of 515,300 shares traded, or almost four times the average daily volume.
If you bought Core Laboratories common stock between May 6, 2002 and March 31, 2003, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than June 9, 2003. If you are a member of this class, you can join this class action online at http://www.ademilaw.com/cases/Core.php.
Any member of the purported class may move the Court to serve as lead plaintiff through Ademi & O'Reilly or other counsel of their choice, or may choose to do nothing and remain an absent class member.
If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at www.ademilaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.