LOS ANGELES, May 29, 2003 (PRIMEZONE) -- Notice is hereby given that Glancy & Binkow LLP commenced a Class Action lawsuit in the United States District Court for the Central District of California on behalf of a class (the "Class") consisting of all persons who purchased securities of eUniverse, Inc. ("eUniverse" or the Company") (Nasdaq:EUNI) between July 30, 2002 and May 5, 2003, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy & Binkow LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9161 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges eUniverse certain of its executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements concerning eUniverse's financial performance caused eUniverse's stock price to become artificially inflated, inflicting damages on investors.
eUniverse operates a network of entertainment-related Web sites focused on music, film, and interactive entertainment. The complaint alleges that, throughout the Class Period, defendants issued numerous statements and filed quarterly reports with the Securities and Exchange Commission that were materially false and misleading because they failed to disclose and/or misrepresented, among other things: (i) that the Company had materially overstated its net income and earnings per share; (ii) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (iii) as a result, the value of the Company's net income and financial results were materially overstated at all relevant times.
On May 6, 2003, before the opening of trading, eUniverse shocked the market by announcing that it "intends to restate its financial statements for the second and third quarters of the year ended March 31, 2003," and possibly the first quarter of fiscal 2003, and attributed the need for restatement to "incorrect processing of certain transactions within the Company's accounting system." The Company also told investors not to rely on its reported financial results for the first three quarters of fiscal 2003, and that the restated financial results will differ materially from the previously reported results. Following this announcement, the Nasdaq halted trading in eUniverse shares and stated that trading will remain halted until the Company has supplied additional information.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy & Binkow LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than July 11, 2003, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy & Binkow LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9161 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca