LITTLE ROCK, Ark., May 3, 2002 (PRIMEZONE) -- The Emerson Firm announced today that a class action has been filed in the United States District Court for the Central District of California on behalf of purchasers of L90, Inc. ("L90" or the "Company") (Nasdaq:LNTY) common stock during the period between July 26, 2001 and March 12, 2002, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be obtained from the Firm.
The complaint charges L90 and certain of its officers and directors with violations of the Securities Exchange Act of 1934. L90 is a provider of marketing services. The complaint alleges that as part of their effort to boost the price of L90 stock, defendants misrepresented L90's true prospects in an effort to conceal L90's improper acts until they were able to conceal their fraud by selling the Company to a third party prior to filing the Company's 10-K (due March 31, 2002). In order to overstate revenues and assets in its second and third quarters of 2001, L90 violated Generally Accepted Accounting Principles and SEC rules by engaging in improper "roundtrip" transactions with HomeStore.com and its customers. These transactions had the effect of dramatically overstating revenues and assets.
On February 4, 2002, L90 issued a press release entitled, "L90 Reports Regulatory Inquiries." The press release stated in part: "L90, Inc., an online media and direct marketing company, today announced that the Company has received notice from the Securities and Exchange Commission that the Commission is conducting an investigation into the Company. In connection with this investigation, the Commission has issued the Company and one of its directors subpoenas requesting documents related primarily to the Company's financial records." On this news the Company's shares plummeted by more than 50% the following trading day and continued to plummet further in the weeks that followed and defendants revealed further incriminating facts.
On March 12, 2002, L90 issued a press release entitled, "L90 Provides Additional Information on Internal Investigation." The press release stated in part: "L90, Inc., an online media and direct marketing company, today provided additional information on the status of the ongoing internal investigation by the Company and the Audit Committee of its board of directors in response to the previously announced Securities and Exchange Commission investigation of the Company, and the request for information from Nasdaq Listing Investigations."
If you bought L90 common stock between July 26, 2001 and March 12, 2002 inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than May 20, 2002. If you are a member of this class, you can join this class action by contacting The Emerson Firm. Any member of the purported class may move the Court to serve as lead plaintiff through The Emerson Firm or other counsel of their choice, or may choose to do nothing and remain an absent class member.
The Emerson Firm has substantial experience representing investors in securities fraud class action lawsuits such as this. In fact, the Firm was recently appointed by a Court in Houston to the Plaintiffs' Counsel Steering Committee prosecuting the Enron retirement plan litigation. The firm has offices in Texas and Arkansas, but represents investors 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.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.