NEW YORK, June 27, 2003 (PRIMEZONE) -- A class action Complaint has been filed in the United States District Court for the Central District of California, case number 03 CV 4424, on behalf of all persons or entities who purchased or otherwise acquired eUniversie Inc. ("eUniverse" or the "Company") securities (Nasdaq:EUNI) between July 31, 2002 through May 5, 2003, both dates inclusive (the "Class Period"). eUniverse, Brad D. Greenspan, and Joseph L. Varraveto are the 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, at Rabin, Murray & Frank 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 alleges that defendants violated section 10(b) of the Securities Exchange Act of 1934 ("Exchange Act") and Rule 10b-5 promulgated thereunder by the Securities and Exchange Commission ("SEC"). In particular, the Complaint alleges that during the Class Period defendants failed to disclose and/or misrepresented that the Company had materially overstated its revenues by incorrectly processing transactions through the Company's accounting system. On May 6, 2003, before the market opened, defendants shocked the investing public when it announced that it would restate its financial statements for the second and third quarters, and possibly the first quarter, of fiscal 2003, and that investors should not rely on eUniverse's previously issued financial statements pending the restatement. Following the announcement, the Nasdaq Small Cap market halted trading of eUniverse stock. The Company later announced that the SEC had commenced an inquiry into the restatement, and that a Director on the Company's Audit Committee had resigned. As a result of these false and misleading statements and omissions of material fact, the Complaint alleges that the price of eUniverse securities was artificially inflated throughout the Class Period, causing plaintiff and other members of the Class to suffer damages.
Plaintiff is represented by the law firm of Rabin, Murray & Frank LLP. Rabin, Murray & Frank 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, Murray & Frank LLP at www.rabinlaw.com.
If you purchased or otherwise acquired eUniverse securities during the Class Period described above, you may, no later than July 11, 2003, 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 plaintiffs' counsel Eric J. Belfi or Sharon Lee at Rabin, Murray & Frank 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