LOS ANGELES, June 19, 2006 (PRIMEZONE) -- Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a Class Action lawsuit in the United States District Court for the Southern District of New York on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of Escala Group, Inc. ("Escala" or the "Company") (Nasdaq:ESCL) between September 5, 2003 and May 8, 2006, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Escala and certain of the Company's executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and dissemination of materially false and misleading statements concerning Escala's business and financial performance caused the Company's stock price to become artificially inflated, inflicting damages on investors. Escala (formerly, Greg Manning Auctions, Inc.) operates through various subsidiaries as a global collectibles merchant and auction house network specializing in auctions, merchant/dealer operations and trading in various collectibles and precious metals. The Complaint alleges that the Company represented throughout the Class Period that it was achieving record results -- particularly as a result of agreements entered into with its majority shareholder, Afinsa Bienes Tangibles, S.A. -- without disclosing that these results were actually achieved from questionable and potentially illegal activities. Defendants also stated that they had complied with the reporting requirements of the SEC and U.S. Generally Accepted Accounting Principles, and had voluntarily complied with the reporting requirements of the Sarbanes-Oxley Act of 2002.
The Complaint alleges that representations Escala made about its financial condition, business prospects, and operations were false and misleading and the individuals in charge of managing the Company had a duty to disclose the Company's true condition to the investing public. Throughout the Class Period, Escala suffered a range of problems affecting its bottom line that remained undisclosed to investors. When investors finally learned that Escala's majority shareholder, from whom Escala derived substantial revenue, was engaged in a pyramid scheme, the market reacted negatively. Shares of the Company declined approximately 85% in heavy trading volume in the days following the Company's disclosures.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than July 10, 2006, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca