HARTFORD, Conn., May 10, 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 Southern District of New York on behalf of all persons who purchased or otherwise acquired the common stock of Escala Group, Inc. ("Escala" or the "Company") (NASDAQ:ESCL) between September 5, 2003 and May 8, 2006, inclusive, (the "Class Period").
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements. Specifically, defendants failed to disclose 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. On this news, given the high level of the integration between Afinsa's and Escala's business operations, ESCL stock fell more than 50% on May 9, 2006.
If you are a member of the class, you may, no later than July 10, 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.