NEW YORK, June 20, 2003 (PRIMEZONE) -- A class action Complaint has been filed in the United States District Court for the Southern District of New York on behalf of all persons or entities who purchased or otherwise acquired RealNetworks, Inc. ("RealNetworks") securities (Nasdaq:RNWK) between July 1, 1999 through June 30, 2001, both dates inclusive (the "Class Period"). Lehman Brothers Inc. and Michael E. Stanek are the named as defendants in the Complaint.
To discuss this action, this announcement, or your rights or interests, please contact plaintiff's counsel, Eric J. Belfi or Sharon Lee, Rabin, Murray & Frank LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com.
The Complaint alleges that defendants violated section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 promulgated thereunder by the Securities and Exchange Commission ("SEC"). In particular, the Complaint alleges that defendants issued and maintained a "Buy" recommendation on RealNetworks securities without any rational economic basis; failed to disclose that they were issuing and maintaining these recommendations to obtain investment banking business; and concealed significant, material conflicts of interest that prevented them from providing independent and objective analysis.
The Complaint alleges that defendant Michael E. Stanek, a senior analyst at Lehman Brothers who covered RealNetworks, stated in a private email regarding the Company that "we (Lehman Brothers) bank these guys so I always have to cut the benefit of the doubt." Defendant Stanek even issued positive ratings on RealNetworks stock despite his private opinion that "RNWK (RealNetworks) has to be a short big time."
The Complaint alleges that as a result of these false and misleading statements and omissions of material fact, the price of RealNetworks securities was artificially inflated throughout the Class Period causing plaintiff and the other members of the Class to suffer damages. On April 28, 2003, the SEC filed a complaint against Lehman Brothers for violating the Exchange Act, and several NASD and NYSE rules by issuing false and misleading analyst reports on companies, including RealNetworks. Lehman Brothers settled these charges for $50 million.
Plaintiff is represented by the law firm of Rabin, Murray & Frank LLP. Rabin, Murray & Frank LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You can learn more information about Rabin, Murray & Frank LLP at www.rabinlaw.com.
If you purchased or otherwise acquired RealNetworks securities during the Class Period described above, you may, no later than July 14, 2003, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. Contact plaintiffs' counsel Eric J. Belfi or Sharon Lee at Rabin, Murray & Frank LLP to further discuss this action, this announcement, or your rights or interests.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca