NEW YORK, Nov. 1, 2002 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Northern District of California, on behalf of all persons or entities who purchased or otherwise acquired securities of Liberate Technologies ("Liberate" or the "Company") (Nasdaq:LBRT) between September 20, 2001 and October 15, 2002, both dates inclusive (the "Class Period"). Mitchell E. Kertzman, Nancy J. Hilker and Liberate Technologies are named as defendants in the complaint.
To discuss this action, this announcement, or your rights or interests, please contact plaintiff's counsel, Eric J. 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.
The complaint charges defendants with violations of the Securities Exchange Act of 1934. Specifically, the plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements regarding the nature of Liberate's revenue and earnings caused Liberate's stock price to become artificially inflated, inflicting damages on investors. The Complaint alleges that during the Class Period, defendants artificially inflated revenue by recognizing certain software license fees in violation of GAAP and the Company's own stated policies. On October 15, 2002, after the market closed, defendants disclosed that the "appropriateness and timing" of certain software license fees had been called into question and that the Company would likely restate its fourth quarter and fiscal year 2002 financial results. Liberate Technologies' stock price plummeted 16% in after-hours trading as a result of the disclosure of its accounting problems. On the next day, October 16, 2002, the fallout from the announcement continued as Liberate Technologies stock dropped more than 22% from the previous day's close.
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 Liberate securities during the Class Period described above, you may, no later than December 16, 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. Contact plaintiff's counsel Eric J. Belfi or Sharon Lee of Rabin & Peckel LLP to further discuss this action, this announcement, or your rights or interests.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.