BALA CYNWYD, Pa., June 4, 2002 (PRIMEZONE) -- A shareholder sued Seitel, Inc. (NYSE:SEI) ("Seitel" or the "Company") claiming that the company misled investors about its business and financial condition, as alleged in a complaint filed by the law firm of Schiffrin & Barroway, LLP.
The complaint was filed in the U.S. District Court for the Southern District of Texas and seeks damages for violations of federal securities laws on behalf of all investors who bought Seitel, Inc. securities between May 5, 2000 and May 3, 2002 (the "Class Period").
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 of Seitel, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint alleges that the Texas-based Seitel, Inc. and certain of its senior officers improperly recognized revenue and net income during fiscal years 2000 and 2001 by recording revenue on data licensing contracts, prior to specific data being selected by and delivered to its customers. The complaint further alleges that top insiders profited illegally from insider trading in Seitel's common stock and earned exorbitant commissions and bonuses that were tied to reported revenue and earnings. During the Class Period and as a result of defendants' misrepresentations, shares of Seitel common stock traded as high as $23.03 per share. Seitel currently trades, after having restated its false financial statements, at approximately $8.00 per share.
On May 3, 2002, Seitel issued a press release acknowledging that the financial statements it issued during the class period were not prepared in conformity with Generally Accepted Accounting Principles ("GAAP"). Seitel also acknowledged that the May 3, 2002 disclosures were a result of its conversations with the SEC.
If you purchased Seitel, Inc. securities between May 5, 2000 and May 3, 2002, you may be a member of the class and have until July 1, 2002 to move the court to become a lead plaintiff. To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca