NEW YORK, Sept. 18, 2003 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) has filed a class action lawsuit against SureBeam Corporation ("SureBeam" or the "Company") (Nasdaq:SUREE) and two of the Company's senior officers on behalf of investors who purchased the common stock of SureBeam during the period between March 16, 2001 and August 20, 2003, inclusive (the "Class Period"). The case was filed in the United States District Court for the Southern District of California.
The Complaint alleges that SureBeam, a provider of electronic irradiation systems and services for the food industry, and two of the Company's senior officers, violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing materially false and misleading statements concerning the Company's financial results. In particular, defendants caused SureBeam to report inflated revenues and earnings for 2000 and 2001. Indeed, the Company fired its auditor Deloitte & Touche, LLP ("Deloitte") when it challenged the appropriateness of SureBeam's improper revenue recognition practices during the Class Period.
In May 2000, SureBeam entered a contract with Tech Ion Industrila Brasil, S.A. ("Tech Ion") for the sale of eleven electronic food irradiation systems worth approximately $55 million in revenue over three years. The complaint alleges that defendants caused SureBeam to recognize $22.4 million in revenues in 2000 and 2001 from this contract although they knew, or for their recklessness would have known, that Tech Ion would not pay this amount. The complaint charges that Deloitte specifically questioned the Company's recognition of revenues from Tech Ion.
Disclosure of the true facts about the Company's results at the end of the Class Period caused the share price of SureBeam to plummet. During the Class Period, the shares had traded at a high of $19.00 on May 29, 2001. After the Class Period, when the true facts were disclosed, the price fell to $1.55.
If you purchased the common stock of SureBeam during the Class Period, you have until October 27, 2003 to ask the Court to appoint you as one of the lead plaintiffs for the Class. To serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca