LOS ANGELES, June 8, 2005 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the Eastern District of Virginia on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of Xybernaut Corporation ("Xybernaut" or the "Company") (Pink Sheets:XYBR), between May 10, 2002 and April 8, 2005, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Xybernaut and certain of the Company's executive officers with violations of federal securities laws. Xybernaut Corporation develops, manufactures and markets mobile/wearable computing and communication systems, and productivity, product-management and asset management software and service solutions. The Complaint alleges defendants knew or recklessly disregarded and failed to disclose material adverse facts, including that: (i) the Company's accounting and related disclosures in its financial statements during the Class Period were inadequate, improper and inherently unreliable; (ii) defendant (CEO and Chairman) Edward G. Newman misappropriated Company funds for personal expenses; (iii) the SEC had commenced an investigation of the Company relating to the sale of Xybernaut securities by a certain shareholder; and (iv) the Company lacked adequate internal controls. On March 31, 2005, defendants disclosed the discovery of material weaknesses in Xybernaut's internal controls with respect to expense reimbursement, revenue recognition and monitoring of business risks. Additionally, the Company revealed for the first time that nearly two months earlier it had received a SEC subpoena seeking documents relating to the sale of securities by an unidentified shareholder. The Company also announced it had received notification from Nasdaq that Xybernaut stock, which had been trading below $1.00 per share, was subject to delisting.
On April 8, 2005, defendants disclosed that the Company had received a letter from its auditor, Grant & Thornton LLP, questioning the accuracy and reliability of Xybernaut's accounting and related disclosures; the Company's historical financial statements for fiscal 2002 and 2003; and the Company's financial statements for the interim first, second, and third quarters of 2002 and 2003. In reaction to this news, the price of Xybernaut stock, which had already fallen $0.53 per share since a March 14, 2005, announcement that the Company would not be able to timely file its annual report, fell another $0.06, closing at $0.13 on the next trading day, April 11, 2005.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than June 14, 2005, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.