NEW YORK, July 8, 2002 (PRIMEZONE) -- Shareholders who want to become lead plaintiff in the securities class action against Edison Schools, Inc. (Nasdaq:EDSN) have until July 15 to file a motion with the court, Berman DeValerio Pease Tabacco Burt & Pucillo said today.
The lawsuit was filed May 22 in the U.S. District Court for the Southern District of New York. It seeks damages for violations of federal securities laws on behalf of all investors who bought Edison Schools common stock from November 11, 1999 through May 14, 2002 (the Class Period).
Berman DeValerio has represented investors in class actions for 20 years. To review the complaint and learn more about becoming a lead plaintiff, please visit the firm's website at www.bermanesq.com.
According to the complaint, Edison Schools, a publicly held operator of public schools, misled investors by releasing false financial information about its earnings.
The complaint alleges that throughout the Class Period Edison Schools issued numerous quarterly press releases and filings with the Securities and Exchange Commission (SEC) reporting the company's supposedly growing revenue stream. These figures were materially false and misleading, the complaint says, because Edison Schools improperly recognized as revenue money paid for teacher salaries, student transportation, and utility bills. In fact, the company never received the money, because it was remitted directly to Edison Schools' "clients," namely local school districts and charter school boards, the complaint states.
The lawsuit also claims that, despite significant shareholder losses during the Class Period, Edison Schools' President and CEO paid himself more than $5 million annually and in one year alone cashed out stock options in excess of $15 million. According to the complaint, other top executives each sold blocks of Edison Schools stock worth at least $5.5 million.
On May 14, 2002, Edison Schools announced 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 the company had reported for numerous quarters. That day, Edison stock closed at $2.94 per share, down significantly from a Class Period high of $36.75.
If you purchased Edison Schools, Inc. common stock during the period from November 11, 1999 through May 14, 2002, you may wish to contact the following attorney at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
Julie Richmond, Esq. One Liberty Square Boston, MA 02109 (800) 516-9926 law@bermanesq.com
You may also visit the firm's website at www.bermanesq.com.
If you wish to apply to be lead plaintiff in this action, a motion must be filed on your behalf with the court no later than July 15, 2002. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. You may also retain counsel of your choice. To be a member of the class, however, you need not take any action at this time.
Berman DeValerio Pease Tabacco Burt & Pucillo (www.bermanesq.com) prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations and consumer fraud. The firm consists of 34 attorneys in Boston, San Francisco and West Palm Beach, Florida.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca