NEW YORK, Dec. 3, 2004 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) has filed a class action lawsuit against Autobytel Inc. ("Autobytel" or the "Company") (Nasdaq:ABTLE) and two of the Company's senior officers, on behalf of all persons or entities who purchased the securities of Autobytel during the period between July 24, 2003 and October 21, 2004, inclusive (the "class period"). The case was filed in the United States District Court Central District of California, Southern Division.
The complaint alleges that Autobytel and the Company's President and Chief Executive Officer, Jeffrey A. Schwartz, and Hoshi Printer, Executive Vice President and Chief Financial Officer of the company, violated the federal securities laws arising out of defendants' dissemination of false and misleading statements concerning the Company's results and operations. Autobytel Inc. Is an automotive marketing service company that helps dealers and manufacturers through its marketing, advertising and customer relationship management tools and programs, primarily through the Internet.
According to the complaint, the true facts, which were known by each of the defendants but concealed for the investing public during the Class Period, were that (a) the company inappropriately recorded revenue/income associated with its dealer sales credit; (b) that as a result of this, the Company's financials were materially inflated; (c) that the Company's financial results were in violation of Generally Accepted Accounting Principles ("GAAP"); (d) that the Company lacked adequate controls to issue earnings or projection reports; (e) that the Company was experiencing weaker than claimed customer relationship management ("CRM") revenues and zero growth in its dealer network size, and (f) that as a result of the above, the Company's financial results were materially inflated at all relevant times.
On July 24, 2003, the Company issued a press release titled "Autobytel Inc. Reports Record Revenue and Profits". In the release, the Company reported net income of $1.1 million, or $0.03 per share, on a GAAP basis, meeting analysts estimates, and revenues of $21.7 million, representing the highest reported quarterly revenue in the Company's history. Throughout the Class period the Company continued to assert its financial good health.
On October 21, 2004, the Company issued a press release announcing partial third quarter financial results and that it would reschedule its earnings conference call and webcast, which had been scheduled for that day. It also announced that the Audit Committee of the Board of Directors of the Company was directing an internal review of the accounting treatment of certain unapplied credits that were recognized as revenue during the four quarters ended March 31, 2004.
If you purchased the securities of Autobytel Inc. during the Class Period, you have until December 28, 2004 to ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. Shareholders outside the United States may also join the action, regardless of where they live or which exchange was used to purchase the securities. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Teresa Webb (tlwebb@pomlaw.com) or Carolyn Moskowitz (csmoskowitz@pomlaw.com) of the Pomerantz Firm at 888.476.6529 (or 888.4.Pomlaw), toll free,. Those who inquire by email are encouraged to include their mailing address and phone number.
The Pomerantz Firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion dollar damages awards on behalf of class members.
More information on this and other class actions can be found on the Class Action Newsline at www.primesons.com/ca.