HARTFORD, Conn., Oct. 17, 2005 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Central District of California on behalf of all persons who purchased the publicly traded securities of Tag-It Pacific, Inc. (AMEX:TAG) ("Tag-It") between November 14, 2003 and August 12, 2005 (the "Class Period").
The Complaint alleges that Tag-It violated federal securities laws by making false or misleading public statements. On August 15, 2005, Tag-It informed investors that it was going to report a "significant operating loss" due to an increase in reserves for accounts receivable and inventory. On August 22, 2005, Tag-It disclosed its reserve for doubtful accounts would increase by $6.4 million and its reserves for inventory obsolescence would increase by $1.55 million. On this news, Tag-It stock fell from a close of $2.32 per share on August 12, 2005, to close at $1.37 per share on August 13, 2005.
If you are a member of the class, you may, no later than December 15, 2005, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.