DALLAS, March 10, 2005 (PRIMEZONE) -- The law firm of Baron & Budd, P.C. announces that a class action lawsuit was filed in the United States District Court for the District of Massachusetts on behalf of purchasers of Viisage Technology, Inc. (Nasdaq:VISG) ("Viisage" or the "Company") securities during the period between October 25, 2004 and March 2, 2005, inclusive (the "Class Period").
The Complaint alleges that Viisage manipulated its financial statements in order to acquire a much needed line of credit. In order to secure such credit, the defendants engaged in a scheme to artificially record a profit in the third quarter of 2004, and made earnings projections known by the Company to be materially inflated. On October 25, 2004, the Company announced a third quarter profit which in fact was the product of accounting shenanigans by pulling revenue into the quarter and pushing expenses into the next reporting period.
On February 27, 2005, after obtaining the much needed credit line, the defendants began to reveal their scheme by announcing numerous fourth quarter charges and a significant asset impairment. The result is that once again Viisage reported a significant loss. As a result of this announcement, Viisage's stock dropped over 20% on heavy trading. Then, on March 2, 2005, defendants again shocked the market by announcing a "material weakness" in its internal financial controls, and that "management will be unable to conclude that the Company's internal controls over financial reporting are effective as of December 31, 2004. Therefore, BDO Seidman LLP, the Company's external accounting firm, will issue an adverse opinion with respect to the effectiveness of the Company's internal controls over financial reporting." On this news, the stock plummeted another 20% closing at $4.50 per share on March 3, 2005, down from almost $7 per share at the commencement of the Class Period.
If you acquired the securities of Viisage Technology, Inc. during the Class Period and meet certain legal requirements, you may, no later than May 9, 2005, move for appointment as lead plaintiff on behalf of the proposed class.
If you are a member of this class and would like to take action in this suit, please visit Baron & Budd online( http://www.securitiesactions.com ). Information on your legal rights can be obtained by contacting the law firm of Baron & Budd, P.C.
About Baron & Budd, P.C.
Since 1977, the law firm of Baron & Budd, P.C. has championed the rights of people and communities harmed by corporate misconduct. With over 70 attorneys and offices in Texas, Illinois, Ohio, Louisiana, and New York, Baron & Budd enjoys a national reputation as a leader of the plaintiff's bar. The firm represents individuals with mesothelioma and other diseases caused by asbestos; leukemia caused by benzene; injuries caused by other toxic substances and unsafe pharmaceuticals; water authorities seeking clean-up costs for drinking water contamination; securities investors defrauded by corporate wrongdoing; and consumers in class actions. For more information on the firm, call 1-800-222-2766 or visit www.baronandbudd.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca