Investors Represented by The Rosen Law Firm Seek to Recover Losses on Behalf of Escala Group, Inc. Shareholders -- ESCL


NEW YORK, May 19, 2006 (PRIMEZONE) -- The Rosen Law Firm (http://www.rosenlegal.com) today announced that it has filed a class action in the United States District Court for the Southern District of New York on behalf of purchasers of Escala Group, Inc. ("Escala" or the "Company") (Nasdaq:ESCL) stock during the period from September 5, 2003 through May 8, 2006 (the "Class Period").

You can join the class action online at http://www.rosenlegal.com or call toll-free at 866-767-3653 or via email Phillip Kim, Esq. pkim@rosenlegal.com or Laurence Rosen, Esq. lrosen@rosenlegal.com. A copy of the complaint is also available at the website.

The Complaint charges the Company and certain named officers with violating federal securities laws by issuing materially false and misleading statements concerning the Company's financial performance. The Complaint alleges the Company failed disclose that the Company's profitability, as well as the viability of a key customer, was the result of unsustainable business practices requiring widespread deception and fraud to succeed, and which would inevitably be discovered and result in sanctions.

On May 9, 2006 investors learned that Spanish officials had raided the Madrid offices of Afinsa as part of a criminal investigation into a suspected billion-dollar fraudulent investment scheme operated by Afinsa. Spanish authorities arrested nine individuals, including Escala's Second Vice Chairman and Director, froze the Spanish assets of Afinsa and raided over 21 homes. As a result of this information, the Company's stock opened for trading at $16.39 on May 9, down from the previous closing price of $32.00. During the two subsequent trading days, the Company's stock further declined, and closed on May 11, 2006, at $4.34 per share, down 86.4% from the pre-disclosure closing price of $32.00.

If you wish to serve as lead plaintiff, you must move the Court no later than July 10, 2006. If you wish to join the litigation or to discuss your rights or interests regarding this class action, please contact 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 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.



            

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