NEW YORK, Oct. 22, 2003 (PRIMEZONE) -- Notice is hereby given that a securities class action lawsuit was filed in the United States District Court for the Southern District of California on behalf of purchasers of SureBeam, Inc. ("SureBeam" or the "Company") (Nasdaq:SUREE) common stock during the period March 16, 2001 and August 20, 2003(the "Class Period").
If you purchased SureBeam securities during the Class Period, you may, no later than October 27, 2003, move the court to serve as a lead plaintiff, provided you meet certain legal requirements. To serve as a Lead Plaintiff, you will be required to sign the Certification, as provided on our website at www.nyclasslaw.com/join.html.
The Complaint alleges the statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (1) that the Company was improperly recognizing revenue in violation of GAAP; (2) that the Company's improper revenue recognition was done through its recognition of revenue from non-affiliated parties when the Company knew that such parties could not pay and for which SureBeam would forgive those receivables; (3) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (4) that as a result, the values of the Company's earnings, net income and earnings per share were materially overstated at all relevant times.
The Class Period begins on March 16, 2001, after SureBeam successfully launched an Initial Public Offering ("IPO"), wherein it obtained net proceeds of $60 million. The Class Period ends on August 25, 2003. On that date, SureBeam shocked the investing public when it announced that the Company would now trade under the ticker symbol "SUREE" because it had missed the deadline to file its Form 10-Q in accordance with NASDAQ Marketplace Rule 4310(c)(14). Investor reaction was swift and negative, with SureBeam stock falling from a close of $1.82 on Friday, August 22, 2003, to a close of $1.59 on Monday, August 25, 2003, or a single-day decline of more than 12% on a very high trade volume.
Plaintiff seeks to recover damages on behalf of all purchasers or acquirers of SureBeam securities during the Class Period. Plaintiff is represented in this class action by the law firm of Bull & Lifshitz, LLP. Bull & Lifshitz, LLP has extensive experience in litigating investor class actions. For more information regarding Bull & Lifshitz, LLP, please view our website at www.nyclasslaw.com.
For an information package (www.nyclasslaw.com/infopackage.html) or if you wish to discuss this action, or have any questions concerning this notice of your rights or interests with respect to this matter, please contact Peter D. Bull, Esq. or Joshua M. Lifshitz, Esq., Bull & Lifshitz, LLP via telephone at (212) 213-6222, via fax at (212) 213-9405 or by email at counsel@nyclasslaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca