BALA CYNWYD, Pa., July 9, 2002 (PRIMEZONE) -- Shareholders of Edison Schools Inc., ("Edison Schools" or the "Company") (Nasdaq:EDSN) who desire to serve as a lead plaintiff in a shareholder class action lawsuit now pending in federal court in New York must submit an application with the Court by July 15, 2002 according to the law firm of Schiffrin & Barroway, LLP.
The lawsuit seeks damages for violations of the federal securities laws on behalf of all investors who purchased Edison Schools Inc. securities between November 11, 1999 and May 14, 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 Edison Schools 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 New York-based Edison Schools Inc., throughout the Class Period, Edison Schools 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 Schools was improperly recognizing revenue by recognizing as revenue monies that were remitted to their clients, comprised of school districts and charter schools, even though the Company did not receive this money. 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 Schools 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 Schools was trading at $1.50 to $2 per share, after reaching a Class Period high of $36.75 per share.
If you purchased Edison Schools Inc. securities between November 11, 1999 and May 14, 2002, you may be a member of the class and have until July 15, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) 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