NEW YORK, Feb. 20, 2004 (PRIMEZONE) -- Wechsler Harwood LLP commenced a securities fraud class action lawsuit on February 19, 2004, in federal court for the District of New Jersey (Newark) on behalf of purchasers of the securities of Datatec Systems, Inc. ("Datatec") (Nasdaq:DATCE) between June 26, 2003 and December 16, 2003, inclusive.
The complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. While CEO Isaac Gaon told investors that Datatec was on track to earn $0.14 to $0.16 per share for fiscal 2004, Datatec hid its true financial condition so that it could obtain continued financing from IBM Credit, an important company lender.
On December 5, 2003, Datatec surprised investors with the news that CEO Gaon had been fired. On December 17, 2003, Datatec told investors it would suffer a $10 million loss for the fiscal quarter ended October 31, 2003, and that Datatec's Audit Committee had hired outside counsel to review Datatec's valuation of its long-term contracts. IBM Credit has since refused to waive Datatec's non-compliance with financial covenants. Datatec's stock price fell substantially on large volume.
If you bought Datatec securities between June 26, 2003 and December 16, 2003, inclusive, you may, no later than April 6, 2004, move the Court to appoint you as lead plaintiff, a representative party who acts on behalf of the other class members in directing the litigation. Your ability to share in any recovery is not affected by whether or not you serve as a lead plaintiff. You may retain Wechsler Harwood LLP or other counsel of your choice.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact Wechsler Harwood LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.