Zimmerman Reed Announces Shareholder Lawsuit Against Former Officers Of Stockwalk And Ernst & Young -- STOK


MINNEAPOLIS, June 27, 2003 (PRIMEZONE) -- Notice is hereby given that a shareholder of Stockwalk, Inc. has filed a lawsuit seeking class action status, in the United States District Court for the District of Minnesota on behalf of persons who purchased the common stock of Stockwalk on the open market from May 8, 2001 through September 25, 2001. At the time, the stock was trading on the Nasdaq Exchange under the symbol STOK. It has now been de-listed.

The shareholder bringing the lawsuit is a resident of Faribault, Minnesota who purchased Stockwalk securities during the class period on the open market. The shareholder is represented by the law firm of Zimmerman Reed, P.L.L.P. For more information about Zimmerman Reed, please consult the firm website at www.zimmreed.com.

The Complaint alleges that certain former officers of Stockwalk issued materially false statements and omitted material facts concerning Stockwalk's financial condition during the class period. Generally, Defendants represented that Stockwalk's internal controls were sufficiently adequate to permit the issuance of a report on the company's financials statements for the period ending March 31, 2001, that the company was not in violation of certain net capital requirements and that the company was not at risk with respect to its stock lending activities. The Complaint alleges that purchasers of Stockwalk securities were unaware that a significant activity that the company was engaged in was stock lending. The Complaint also asserts that Defendant Ernst & Young lacked independence in conducting its auditing and accounting activities, was negligent in performing its services and should have objected to the issuance in June and July 2001, of its prior, unqualified opinion on the March 31, 2001 financial statements.

The shareholder seeks to recover damages on behalf of all class members. Any shareholder who purchased Stockwalk securities on the open market after May 8, 2001 and before September 25, 2001 and who wishes to act as lead plaintiff, may move the Court to act in that capacity no later than August 26, 2003. If you wish to discuss your rights as a lead plaintiff or as a class member, please contact Robert C. Moilanen or Carolyn G. Anderson at Zimmerman Reed at 800-755-0098 or 612-341-0400.

More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca



            

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