PHILADELPHIA, Dec. 18, 2003 (PRIMEZONE) -- The law firm of Berger & Montague, P.C. has filed a securities fraud class action complaint against LeapFrog Enterprises, Inc. ("LeapFrog") (NYSE:LF) on behalf of investors. Filed in the U.S. District Court for the Northern District of California, the complaint asserts claims on behalf of investors who purchased publicly traded securities of LeapFrog during the period from July 24, 2003 through October 21, 2003 (the "Class Period").
The complaint alleges that LeapFrog and three of its top officers engaged in a scheme to defraud LeapFrog investors in violation of the federal securities laws. According to the complaint, LeapFrog, which designs and markets technology-based educational toys and other products, faced a slowdown in growth in its key market, U.S. consumer business. The complaint alleges that defendants concealed this slowdown in growth by foisting on LeapFrog's customers products they did not order or could not sell on a timely basis without discounting. According to the complaint, defendants inflated LeapFrog's reported results and growth rate.
The complaint alleges that, after the close of the market on October 21, 2003, LeapFrog stunned investors by announcing disappointing results for the September 30, 2003 quarter. The complaint further alleges that, prior to this announcement, the three individual defendants sold large amounts of LeapFrog stock from their personal portfolios.
If you purchased LeapFrog securities during the Class Period (July 24, 2003 -- October 21, 2003), you may, no later than January 31, 2004, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest'' in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest,'' and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. If you have sustained substantial losses in LeapFrog securities during the Class Period, please contact Berger & Montague, P.C. at investorprotect@bm.net for a more thorough explanation of the Lead Plaintiff selection process.
The law firm of Berger & Montague, P.C. has over 55 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries of several billion dollars to investors. The firm has represented investors as lead counsel in such leading securities actions as Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office Solutions.
The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example:
"Class counsel did a remarkable job in representing the class
interests." In Re: IKON Offices Solutions Securities Litigation.
Civil Action No. 98-4286(E.D.Pa.) (partial settlement for
$111 million approved May, 2000).
". . . (Y)ou have acted the way lawyers at their best ought to act.
And I have had a lot of cases . . . in 15 years now as a judge and I
cannot recall a significant case where I felt people were better
represented than they are here . . . I would say this has been the
best representation that I have seen." In Re: Waste Management,
Inc. Securities Litigation, Civil Action No. 97-C 7709
(N.D. Ill.) (settled in 1999 for $220 million).
If you purchased LeapFrog securities during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Todd S. Collins, Esquire
Diane Werwinski, Investor Relations Manager
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
Phone: 888-891-2289 or 215-875-3000
+Fax: 215-875-5715
Website: http://www.bergermontague.com
e-mail: InvestorProtect@bm.net
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca