HOUSTON, Oct. 15, 2003 (PRIMEZONE) -- Emerson Poynter LLP, a securities class action trial law firm, announced today that a class action lawsuit has been filed on behalf of purchasers of the common stock of Sportsline.com Inc. (Nasdaq:SPLN); "Sportsline" or the "Company") during the period between May 15, 2001 and September 25, 2003 inclusive (the "Class Period"). A copy of the complaint can be obtained from the Court or by making a toll-free call to the Firm at 1-800-663-9817. The action is pending in the United States District Court for the Southern District of Florida against defendants Kenneth W. Sanders, Michael Levy, and Sportsline.com Inc.
The complaint charges Sportsline, Sanders, and Levy with violations of the Securities Exchange Act of 1934. The complaint alleges that defendants issued a series of false and misleading statements regarding Sportsline's: (1) advertising base and its ability to mitigate overall diminished media spending; (2) ability to reach positive EBITDA in the fourth quarter of 2002; (3) successful integration of its fantasy products and their positive impact on the Company's overall growth and presence in the Internet sports media industry; and (4) ability to increase the Company's value through the acquisition of the MVP.com store.
As alleged in the complaint, defendants knew and failed to disclose: (a) the Company's fantasy sports business was not as significant a revenue source as the Company portrayed it to be; (b) revenue derived from advertising sales was diminishing and CBS was contributing significantly less advertising revenue than disclosed; (c) a positive EBITDA could only be achieved by hiding expenses and improperly classifying discontinued operations; and (d) MVP.com's assets did not yield promised value. As a result of the defendants' false and misleading statements, Sportsline's stock traded at inflated prices during the Class Period, increasing to as high as $3.85 on November 27, 2001.
On September 26, 2003, Sportsline shocked the market by revealing that the Company was reducing its previous revenue and earnings forecasts for the third quarter and full year 2003 and that it is restating its reported financial results for the past two and a half years. In response to the Company's devastating news concerning the financial restatements, Sportsline's stock price plummeted by more than 30% on volumes of about eight times the daily average.
If you bought Check Point publicly traded securities between May 15, 2001 through September 25, 2003, inclusive, and you wish to serve as lead plaintiff, you must move the Court through Emerson Poynter or other counsel of your choice, not later than December 8, 2003. If you are a member of this class, you can join this class action by contacting Emerson Poynter via e-mail or calling toll-free.
Emerson Poynter has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Houston, Texas and Little Rock, Arkansas, but represents investors and consumers throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call toll free or e-mail the firm.
More information on this and other class actions can be found on theClass Action Newsline at www.primezone.com/ca