NEW YORK, August 29, 2003 (PRIMEZONE) -- Wolf Popper LLP has filed a securities fraud lawsuit against SureBeam Corporation ("SureBeam") (Nasdaq:SUREE), in the United States District Court for the Southern District of California, on behalf of persons who purchased shares of SureBeam's common stock pursuant to SureBeam's March 16, 2001 initial public offering or on the open market during the period from March 16, 2001, through August 27, 2003.
The Complaint alleges that during the Class Period, defendants improperly utilized the percentage-of-completion method for accounting for its revenue and improperly accounted for millions of dollars of revenue derived from sales of equipment to a Brazilian company and to Texas A&M University causing the Company's Class Period revenues to be misrepresented.
The true facts began to be revealed when, on June 3, 2003, SureBeam announced that it had terminated KPMG LLP as its auditor. A little more than two months later, on August 21, 2003, SureBeam announced that it was firing Deloitte & Touche, which had been hired to replace KPMG, because Deloitte & Touche allegedly had refused to sign off on the Company's improper accounting. Prior to the termination of KPMG, SureBeam's stock was selling for $3.10 per share. After the substantial issues that Deloitte had contested became public, SureBeam's stock had dropped almost in half, to $1.62 per share.
During the period SureBeam was issuing its favorable false statements about the Company's financial results, defendant Lawrence A. Oberkfell, the former President and Chief Executive Officer of the Company, sold over 1.5 million SureBeam shares for proceeds of more than $5.5 million. Similarly, defendant Kevin K. Claudio, formerly the Chief Financial Officer of the Company and currently its Senior Vice President, sold over 522,000 SureBeam shares for proceeds of more than $2.3 million.
Class members who desire to be appointed a lead plaintiff in this action must file a motion with the Court no later than October 27, 2003. Class members who are interested in serving as a lead plaintiff in this action, or other persons who have questions or information regarding the prosecution of this action, are urged to call or write:
Wolf Popper LLP Carl L. Stine, Esq. 845 Third Avenue New York, NY 10022 Tel.: 212.451.9631 or 877.370.7703 (toll free) Fax: 212.486.2093 or 877.370.7704 (toll free) Email: irrep@wolfpopper.com website: www.wolfpopper.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca