NEW ORLEANS, April 29, 2006 (PRIMEZONE) -- Kahn Gauthier Swick, LLC ("KGS") announces that shareholders of GMH Communities Trust (NYSE:GCT) who purchased, exchanged or otherwise acquired the common stock of GCT between October 28, 2004 and March 10, 2006 have until June 5, 2006 in which to move for appointment as lead plaintiff in a securities fraud class action lawsuit currently pending in the United States District Court for the Eastern District of Pennsylvania. No class has yet been certified in this action.
UNTIL A CLASS IS CERTIFIED, YOU ARE NOT REPRESENTED BY COUNSEL UNLESS YOU RETAIN AN ATTORNEY.
The complaint alleges that GCT and certain of its officers and directors issued a series of materially false and misleading 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, GCT'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 acquired shares of GCT between October 28, 2004 and March 10, 2006 and want to discuss your legal rights, you may e-mail or call KGS, without obligation or cost to you. You may contact Lewis Kahn of KGS toll free 1-866-467-1400, ext. 100, via cell phone at 504-301-7900, or by email at lewis.kahn@kglg.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca