LITTLE ROCK, Ark., May 4, 2001 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that a class action has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of Opus360 Corp. ("Opus" or the "Company") (Nasdaq:OPUS) securities at, or traceable to, Opus' April 7, 2000 initial public offering ("IPO") and through March 20, 2001, inclusive (the "Class Period").
The complaint charges Opus, Ari Horowitz (Chief Executive Officer, Chairman of the Board), Richard Miller (President and Chief Operating Officer), Richard McCann (Chief Financial Officer until September 11, 2000); Opus directors John Halvey, James Cannavino, John Drew, Irwin Lieber, William Nuti, Barry Rubinstein and Roger Weiss; co-lead underwriters Fleet Boston Robertson Stephens Inc., J.P. Morgan Securities Inc., E*Offering Corp. and Bear Stearns & Co., Inc.; and selling shareholders Safeguard Scientifics Inc. and CompuCom Systems Inc. with violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933. On April 7, 2000, Opus commenced an IPO of 7 million of its shares of common stock at an offering price of $10 per share. In addition, Safeguard Scientifics, Inc. and CompuCom Systems, Inc., together sold 700,000 shares of Opus common stock at $10 per share on April 7, 2000. In connection therewith, Opus filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC.
The complaint alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that (i) OPUS XCHANGE, a product that the Prospectus touted as a sophisticated professional matching and project management software system, was fatally flawed and could not perform many of the functions detailed in the Prospectus; and (ii) that Opus had no basis for stating that the funds earned from the IPO would suffice to fund its aggressive expansion plan for at least 12 months following the IPO without additional financing. On March 20, 2001, Opus filed with the SEC its financial results for the year 2000, on Form 10-K. The 10-K contained a letter from KPMG, LLP, Opus' outside auditors, which revealed that there was a substantial doubt about Opus' ability to continue as a going concern. Opus' common stock closed at $0.13 per share on April 20, 2001 -- a 98% decrease from the IPO price of $10 per share.
If you bought the securities of Opus at or traceable to its April 7, 2000 initial public offering ("IPO") and through March 20, 2001, inclusive, you may, no later than June 18, 2001 request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Cauley Geller Bowman & Coates, LLP, or other counsel of your choice, to serve as your counsel in this action.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents shareholders from throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at www.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP Client Relations Department: Sue Null, Charlie Gastineau or Jackie Addison P.O. Box 25438 Little Rock, AR 72221-5438 Toll Free: 1-888-551-9944 E-mail: info@classlawyer.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca