NEW YORK, Nov. 25, 2004 (PRIMEZONE) -- Murray, Frank & Sailer LLP announces a class action lawsuit on behalf of purchasers of the securities of Autobytel, Inc. ("Autobytel" or the "Company") (Nasdaq:ABTLE) between July 24, 2003 and October 21, 2004, inclusive (the "Class Period").
The Complaint alleges defendants knew or recklessly disregarded that their statements were materially false and misleading when made because: (a) the Company inappropriately recorded revenue/income associated with its dealer sales credits; (b) as a result of this, the Company's financial results were materially inflated; (c) the Company's financial results were in violation of GAAP; (d) the Company lacked adequate internal controls to issue earnings or projection reports; (e) the Company was experiencing weaker than claimed CRM revenues and zero growth in its dealer network size; and (f) as a result of the above, Autobytel's financial results were materially inflated at all relevant times.
On October 21, 2004, the Company revealed its third quarter 2004 financial results would be rescheduled because the Audit Committee and Board of Directors of the Company were directing an internal review of the accounting treatment of certain credits that were recognized as revenue during the preceding quarters. These revelations shocked the market, causing Autobytel's share price to plummet the next day from the previous day's close of $8.81, to close on October 22, 2004, at $6.88, a one-day drop of nearly twenty two percent (22%) as a result of this news.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired Dobson securities on any exchange between July 24, 2003 and October 21, 2004, and sustained damages, you may, no later than December 28, 2004, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.