NEW YORK, June 3, 2003 (PRIMEZONE) -- Wechsler Harwood LLP today announced that a securities class action has been commenced on behalf of persons or entities who purchased or otherwise acquired the securities of eUniverse, Inc. ("eUniverse" or the "Company") (Nasdaq:EUNI) between July 30, 2002 and May 5, 2003, inclusive (the "Class Period").
The case, entitled Currier v. eUniverse, Inc., et al., was filed in the United States District Court for the Central District of California against defendants eUniverse and certain of its senior officers. A copy of the Complaint is available from the Court or can be viewed on the Wechsler Harwood web site at: www.whesq.com or can be obtained by contacting the firm Toll Free at (877) 935-7400 (ext. 251).
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 July 30, 2002 and May 5, 2003, thereby artificially inflating the price of eUniverse common stock and inflicting damages on investors.
eUniverse operates a network of entertainment-related Web sites focused on music, film, and interactive entertainment. The complaint alleges that, throughout the Class Period, defendants issued numerous statements and filed quarterly reports with the Securities and Exchange Commission that were materially false and misleading because they failed to disclose and/or misrepresented, among other things: (i) that the Company had materially overstated its net income and earnings per share; (ii) that the Company 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 Company's net income and financial results were materially overstated at all relevant times.
On May 6, 2003, before the opening of trading, eUniverse shocked the market by announcing that it "intends to restate its financial statements for the second and third quarters of the year ended March 31, 2003" and possibly the first quarter of fiscal 2003. The Company attributed the need for restatement to "incorrect processing of certain transactions within the Company's accounting system." The Company also told investors not to rely on its reported financial results for the first three quarters of fiscal 2003, and that the restated financial results will differ materially from the previously reported results. Following this announcement, the Nasdaq halted trading in eUniverse shares and stated that trading will remain halted until the Company has supplied additional information.
If you are a member of the class described above, you may, not later than July 11, 2003, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." 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 Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. 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 the following:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca