NEW YORK, Aug. 1, 2005 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit in the United States District Court for the Southern District of New York on behalf of shareholders who purchased or otherwise acquired the securities of Ramp Corporation ("Ramp" or the "Company") (AMEX:RCO), (Pink Sheets:RCOCQ) between April 14, 2004, and May 20, 2005, inclusive (the "Class Period"). It names as defendants, Andrew Brown, Ron Munkittrick, Darryl R. Cohen, Mitchell Cohen, and BDO Seidman LLP ("Seidman"), an accounting firm, which performed audits for the Company for the years ended December 31, 2003 and December 31, 2004.
The complaint alleges that during the Class Period, Ramp and certain of the Company's executive officers issued materially false and misleading financial statements to the investing public regarding its financial performance and prospects in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. The complaint alleges that on May 21, 2005, Seidman resigned as the Company's auditor and advised Ramp that the Company's 2003 and 2004 audit reports were unreliable. The complaint further alleges that as a result of such information, Ramp stated that it would not file its quarterly report on Form 10-Q for the quarter ended March 31, 2005 on time, which led to its defaulting on certain debentures. It is also alleged in the complaint that Defendant Brown resigned and was suspended on May 22, 2005, for potential violations of Company policies and/or the law when he received an unspecified amount of cash as a gift in December 2003. The Company filed for reorganization under Chapter 11 of the Bankruptcy laws on June 2, 2005, and the American Stock Exchange notified it on June 6, 2005 that it was delisting the Company's stock.
Upon disclosure of the news that Seidman had resigned and that the Company's financial statements for 2003 and 2004 were unreliable, the Company's stock did not trade for approximately two weeks. On the day Ramp securities resumed trading, the stock closed at $0.19, down from the closing price of $1.25 on May 20, 2005, a drop of approximately 85%.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than fifteen years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired Ramp securities on any world exchange between April 14, 2004, and May 20, 2005, and sustained damages, you may, no later than September 19, 2005, 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, Christopher S. Hinton or Brad P. Dyer of Murray, Frank & Sailer LLP.