BALA CYNWYD, Pa., May 15, 2003 (PRIMEZONE) -- Law offices of Brodsky & Smith, LLC today announces that a securities class action lawsuit has been filed on behalf of shareholders who purchased the common stock and other securities of eUniverse, Inc. ("eUniverse" or the "Company") (Nasdaq:EUNI) between July 30, 2002 and May 5, 2003, inclusive (the "Class Period").
The case is pending in the United States District Court for the Central District of California against the company and certain of its officers and directors. The Complaint alleges that defendants violated federal securities laws by issuing a series of material misrepresentations to the market between July 30, 2002 and May 5, 2003, thereby artificially inflating the price of eUniverse common stock. Specifically, the Complaint alleges that the statements by the Company failed to disclose and/or misrepresented the following adverse facts, among others: (i) eUniverse had materially overstated its net income and earnings per share; (ii) eUniverse lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (iii) as a result, the value of the eUniverse's net income and financial results were materially overstated at all relevant times.
eUniverse stunned the market on May 6, 2003 when it announced that it "intends to restate its financial statements for the second and third quarters of the year ended March 31, 2003" and possibly also for the first quarter of fiscal 2003. The NASDAQ immediately halted trading of eUniverse shares and stated that the shares will remain halted until eUniverse supplies additional information.
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 July 30, 2002 and May 5, 2003 and want to discuss your legal rights, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. You may contact Marc L. Ackerman, Esquire or Evan J. Smith, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by e-mail at clients@brodsky-smith.com, or by calling toll free 877-LEGAL-90.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca