NEW YORK, May 10, 2006 (PRIMEZONE) -- In the investor notice issued yesterday May 9, 2006, by The Rosen Law Firm PA announcing that a class action has been filed on behalf of purchasers of Escala Group, Inc. ("Escala" or the "Company") (Nasdaq:ESCL) common stock, the notice described the incorrect class period date for the lawsuit. The class action is on behalf of all purchasers of Escala common stock during the period from September 5, 2003 through and including May 8, 2006.
To join the Escala securities litigation as a plaintiff or for further information, please call Laurence Rosen, Esq. or Phillip Kim, Esq. toll-free at 866-767-3653 or email lrosen@rosenlegal.com or pkim@rosenlegal.com.
You can join the class action online at http://www.rosenlegal.com .
A class action lawsuit has already been filed on behalf of Escala shareholders. If you wish to serve as lead plaintiff, you must move the Court no later than 59 days from today. If you wish to join the litigation or to discuss your rights or interests regarding this class action, please contact plaintiff's counsel, Laurence Rosen, Esq. or Phillip Kim, Esq. of The Rosen Law Firm toll free at 866-767-3653 or via e-mail at lrosen@rosenlegal.com or pkim@rosenlegal.com. No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. You may also remain an absent class member.
The Complaint alleges violations of the federal securities laws and asserts that defendants made material misstatements and omitted information regarding the true nature of Escala's business and sales activities. Escala is a major distributor of collectibles including postage stamps, and one of its major customers and joint venturers is its majority shareholder, Afinsa Bienes Tangibles SA ("Afinsa").
On May 9, 2006 it was publicly reported that Spanish police had made arrests and raided the offices of Afinsa and the Company's offices in Spain. The operation forms part of a joint investigation launched by the National Court, tax authorities, financial crime prosecutors and the National Police over an alleged pyramid-type scheme based on overpriced stamps and other collectibles. The prosecutor's office said in a statement that Spanish authorities are conducting more than 20 searches at company offices and private residences.
As a result of these revelations, given the high level of the integration between Afinsa's and Escala's business operations, ESCL stock fell more than 50% in heavy trading on May 9, 2006.
The Rosen Law Firm http://www.rosenlegal.com has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud. The Rosen Law Firm represents investors throughout the nation, concentrating its practice in securities class actions.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca