NEW YORK, June 10, 2002 -(PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Southern District of New York, on behalf of all persons or entities who purchased Edison Schools, Inc. ("Edison" or the "Company") securities (Nasdaq:EDSN) between November 11, 1999 through May 14, 2002, both dates inclusive (the "Class Period"). Edison, Christopher Whittle, Adam Feild, and Christopher Cerf are named as defendants in the action.
The Complaint alleges that defendants violated section 10(b) of the Securities and Exchange Act of 1934, and SEC Rule 10b-5 by issuing a series of materially false and misleading statements concerning its business and financial condition. Throughout the Class Period, Edison issued numerous quarterly press releases reporting the Company's supposedly growing revenue stream and increasing income. Such representations were repeated in reports filed with the Securities and Exchange Commission ("SEC"). According to the complaint, these representations were materially false and misleading because Edison improperly recognized as revenue salaries paid by school districts directly to teachers in Edison Schools. Accordingly, the complaint charges, the Company's revenues and other financial data reported throughout the Class Period were materially false and misleading. On May 14, 2002, Edison revealed that it had been the subject of an SEC investigation and has entered into a settlement with the SEC under which it agreed to reclassify the revenues that the Company had reported for numerous quarters. At the time of the disclosure, the common stock of Edison was trading at $1.50 to $2 per share, after reaching a Class Period high of $36.75 per share.
Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You can learn more information about Rabin & Peckel LLP at www.rabinlaw.com.
If you purchased Edison securities between November 11, 1999 through May 14, 2002, you may, no later than July 6, 2002 move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. If you wish to discuss this action further or have any questions concerning this announcement, or your rights or interests, please contact plaintiff's counsel, Eric Belfi or Sharon Lee, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca