BALA CYNWYD, Pa., July 31, 2001 (PRIMEZONE) -- Schiffrin & Barroway, LLP announced today that it recently filed lawsuits against InterVoice Brite, Inc., Emex Corporation, ECI Telecom Ltd. and Transmeta Corporation for violations of the federal securities laws.
If you purchased the securities of any of the companies listed below during the class period, you may be a member of the class and have until the date specified to move the court to become the lead plaintiff. For more information on a particular lawsuit and to view the complaint, you may visit our website at www.sbclasslaw.com. To learn more about your rights and interests in these cases and your ability to potentially recoup your losses, please contact Schiffrin & Barroway directly at 888-299-7706 (toll free) or 610-667-7706, fax number 610-667-7056 or by e-mail at info@sbclasslaw.com.
INTERVOICE BRITE, INC. (Nasdaq:INTV) (Class Period: 10/12/99 - 06/06/00). The complaint charges InterVoice and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. The Company was created through the acquisition of Brite Voice Systems, Inc. ("Brite") for $164.4 million in cash and stock in the 2ndQ F00. Specifically, the complaint alleges that during the Class Period, defendants made materially false statements about InterVoice's business, its financial results, the success of its integration with Brite and its prospects. As a result, InterVoice's stock was inflated to as high as $38.75 per share. The Individual Defendants took advantage of this inflation, selling 525,916 shares of their InterVoice stock for $13.4 million in proceeds.
On 6/6/00, InterVoice shocked the market, revealing that it would report a loss of $0.03 to $0.05 and revenues of only $67-$68 million for the 1st Q F01 rather than the EPS of $0.22 and revenues of $89 million defendants had led the market to expect. Defendants blamed the shortfall on sales people who had begun leaving the Company in the months prior to this disclosure, some of which were unhappy with the integrated Company. Defendants also claimed they had implemented new guidance from the SEC, Staff Accounting Bulletin No. 101, Revenue Recognition in Financial Statements ("SAB 101") earlier than planned. These revelations caused InterVoice stock to plummet to as low as $5.75 per share before closing at $6.125, a decline of 85% from its Class Period high on volume of 15.5 million shares. The complaint was filed in the U.S. District Court for the Northern District of Texas. The lead plaintiff motion must be filed no later than August 4, 2001.
EMEX CORPORATION (Nasdaq:EMEX) (Class Period: 04/09/01 - 05/23/01). The complaint charges Emex and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that on April 9, 2001, Emex announced that it had obtained $100 million in project financing to build the first of a series of its highly-touted commercial plants. Defendants credited the success of the deal to "the efforts of Credit Suisse First Boston," a prestigious Wall Street investment firm. In reaction to the news, the price of Emex common stock soared 13% on April 10, 2001. On May 23, 2001, Dow Jones Newswires broke the news that, in fact, Credit Suisse First Boston ("CSFB") was not involved in securing Emex's financing. Furthermore, according to the May 23rd article, a spokesperson for CSFB stated that CSFB turned down Emex's financing proposal. On May 30, 2001, Emex issued another press release in which it revealed that Fieldstone, Inc., not CSFB, was the financial institution behind the $100 million financing. The complaint was filed in the U.S. District Court for the Southern District of New York. The lead plaintiff motion must be filed no later than August 6, 2001.
ECI TELECOM LTD. (Nasdaq:ECIL) (Class Period: 05/02/00 - 02/14/01). The complaint charges ECI Telecom Ltd. ("ECI") and certain of its officers and directors with issuing false and misleading statements concerning ECI's reported revenue for the first, second and third quarters of 2000. Specifically, the complaint alleges that on February 14, 2001, the Company announced that it expected to move $38 million in revenue from its 1999 financial statement to 2000, and $61 million from 2000 to 2001. The complaint was filed in the U.S. District Court for the Eastern District of Virginia. The lead plaintiff motion must be filed no later than August 11, 2001.
TRANSMETA CORPORATION (Nasdaq:TMTA) (Class Period: 11/07/00 - 06/20/01). On 11/7/00, Transmeta completed its Initial Public Offering ("IPO") pursuant to a Registration Statement and Prospectus, selling 14,950,000 shares (including over-allotments) at $21.00 per share for net proceeds of $289 million. The complaint alleges that in connection with Transmeta's IPO and continuing throughout the Class Period, defendants made false and misleading statements about Transmeta's business and its principal product, the Crusoe family of microprocessors, stating that this technology represented a revolutionary process that delivered longer battery life in Mobile Internet Computers while delivering high performance. As a result, Transmeta's stock traded as high as $50-7/8 per share. In May 2001, as the Transmeta insider's lock-up agreements expired, five of the Individual Defendants sold 829,500 of their Transmeta shares for proceeds of over $10.5 million.
Then, just weeks later, Transmeta was forced to admit that its results for the Second Quarter 2001 would be much worse than defendants had previously represented and that Transmeta would, in order to properly account for its impaired inventory, be forced to record a multi-million dollar inventory charge in connection with Transmeta's inventory for defective and/or outdated products. Following Transmeta's announcement, Transmeta stock collapsed to $5.12 per share before closing at $5.36 per share, an 89% decline from its Class Period high of $50.875. The complaint was filed in the U.S. District Court for the Northern District of California. The lead plaintiff motion must be filed no later than August 24, 2001.
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors.
If you are a shareholder in any of the companies listed above and would like to be a lead plaintiff in one of these securities class actions, please contact Schiffrin & Barroway at 888-299-7706.