BOCA RATON, Fla., May 7, 2003 (PRIMEZONE) -- The Florida law firm of Vianale & Vianale LLP announces that a class action lawsuit was filed on May 6, 2003, on behalf of purchasers of the securities of Acclaim Entertainment, Inc. ("Acclaim" or the "Company") (Nasdaq:AKLM) between January 22, 2002 to September 19, 2002, inclusive. A copy of the complaint filed in this action can be viewed on Vianale & Vianale's website at: http://www.vianalelaw.com
The action (CV-03-2175) is pending in the United States District Court, Eastern District of New York, against defendants Acclaim Entertainment, Inc., Rodney Cousens and Gerard Agoglia. The case is assigned to Judge Seybert.
The Complaint charges Acclaim and certain of its executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements concerning Acclaim's financial performance caused Acclaim's stock price to become artificially inflated, inflicting damages on investors. Acclaim is a developer of interactive entertainment software. The complaint alleges that during the Class Period, Acclaim improperly capitalized software development costs and overstated earnings by recording declining allowances for returns and price concessions together with failing to write down receivables despite deteriorating customer quality and increasing delinquent accounts receivables. Plaintiff claims that these materially false and misleading statements caused Acclaim shares to trade at artificially inflated levels and, as a result of this inflation, Acclaim was able to complete a private placement offering raising net proceeds of $21.5 million on April 11, 2002. On September 19, 2002, just months after the offering was completed, Acclaim revealed that its fiscal year 2002 first and second quarter results and 2003 projections were false when issued. As a result of this news, Acclaim stock dropped from a Class Period high of $5.85 to less than $1 per share
If you bought the securities of Acclaim between January 22, 2002 to September 19, 2002, you may, no later than May 13, 2003 move the Court to appoint you as lead plaintiff, a representative party that acts on behalf of other class members. The Court must determine whether the class member's claim is typical of other class members' claims, and whether the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Vianale & Vianale LLP, or other counsel of your choice, to serve as your counsel in this action.
Vianale & Vianale LLP is active in major litigations pending in federal and state courts. You may visit our web site (http://www.vianalelaw.com) for more firm information.
If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact:
Kenneth J. Vianale, Esq. Julie Prag Vianale, Esq. 5355 Town Center Road Suite 801 Boca Raton, Florida 33486 561-391-4900 e-mail: info@vianalelaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca