LOS ANGELES, Aug. 2, 2005 (PRIMEZONE) -- Glancy Binkow & Goldberg LLP -- representing shareholders of Navarre Corporation -- announces 10 days remaining to move to be a lead plaintiff in the shareholder lawsuit. All persons and institutions who purchased securities of Navarre Corporation ("Navarre" or the "Company")(NYSE:NAVR) between January 21, 2004 and February 22, 2005, inclusive (the "Class Period"), may move the Court not later than August 12, 2005, to serve as lead plaintiff, however, you must meet certain legal requirements.
If you wish to receive a copy of the Complaint, or have any questions concerning 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, Toll Free at (888) 773-9224, or e-mail to info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Navarre and certain of the Company's executive officers with violations of federal securities laws. Plaintiff claims defendants' omissions and material misrepresentations during the Class Period artificially inflated Navarre's stock price, inflicting damages on investors. Navarre is a publisher and distributor of home entertainment and multimedia products, including personal computer software, audio and video titles, and interactive games. The Complaint alleges defendants made materially false and misleading statements concerning the Company's business and financial results. On January 10, 2005, Navarre announced the acquisition of FUNimation for $100 million in cash and between 1.495 million and 1.827 million shares of Navarre stock. After this announcement, Navarre's stock reached its Class Period high of $18.77 per share. While the price of Navarre stock was inflated during the Class Period, defendants sold 994,362 shares of Navarre stock for proceeds of $13.8 million.
On January 18, 2005, Navarre filed a registration statement with the SEC to raise up to $140 million through the sale of its common stock to fund the acquisition of FUNimation. On January 26, 2005, Navarre reported favorable third quarter fiscal 2005 results, which according to defendants reflected "the continuing execution of our strategic plan." Then, on February 22, 2005, the Company suddenly withdrew its Registration Statement initially filed for the purpose of funding its acquisition of FUNimation. The Complaint alleges that this sudden withdrawal reignited rumors of problems with the Company's accounting. As a result of this news, Navarre stock dropped to less than $7 per share. Subsequently, the Company announced that it would postpone the release of its fourth quarter and fiscal year 2005 financial results and that it was reviewing the recognition and classification of certain fiscal 2005 tax items.
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 shareholder lawsuits, 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 August 12, 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.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.