HARTFORD, Conn., March 21, 2006 (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 Western District of Missouri behalf of all persons who purchased or otherwise acquired the publicly traded securities of H&R Block Corporation ("HRB" or the "Company") (NYSE:HRB) between June 12, 2002 and March 15, 2006, inclusive, (the "Class Period").
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements. Specifically, HRB engaged in fraudulent business practices by steering customers to its Express IRA -- a retirement account in which most customers have lost money because the Express IRA's fees exceeded the return on interest earned on the account. HRB marketed the Express IRA in a fraudulent manner by failing to adequately disclose the following: (i) that the Express IRA earned a negative rate of return because of fees; (ii) that the fees associated with the Express IRA were not presented in a format comprehensible to customers; (iii) that the value of customer's accounts would decline over time unless they made large and continuing contributions to the Express IRA because the fees far exceeded the low rate of return; and (iv) that there were tax consequences and penalties associated with early withdrawal of funds from the Express IRA. Additionally, HRB announced that it would restate its financials for the years-ended April 30, 2004 and April 30, 2005 because HRB understated its state income taxes by at least $32 million.
After the truth about HRB began to be revealed on February 23, 2006, HRB's stock price fell approximately 16%, from $25.19 per share to $20.63 per share.
If you are a member of the class, you may, no later than May 16, 2006, 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.