HARTFORD, Conn., April 6, 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 Eastern District of Pennsylvania on behalf of all persons who purchased or otherwise acquired the publicly traded securities of GMH Communities Trust ("GMH" or the "Company") (NYSE:GCT) between October 28, 2004 and March 10, 2006, inclusive, (the "Class Period"). Also included are all those who purchased in a secondary offering on or around September 28, 2005.
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements in order to inflate earnings, issue dividends, and complete a secondary offering. Specifically, in completing its year-end closing of its 2005 financial statements, GMH's Chief Financial Officer wrote to the Audit Committee of the board indicating certain problems including the "tone at the top" from the Company's executive management. The Audit Committee launched an investigation and found, among other things, that the Company had material weaknesses in internal controls, that pressure was exerted by key executives on the accounting function and that there was a need for adjustments in the Company's financial statements for current and prior periods.
On this news, shares fell 23% from the close of $16.83 on March 10, 2006 to reach $12.90 by the close on March 13.
If you are a member of the class, you may, no later than June 2, 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.