PHILADELPHIA, March 6, 2002 (PRIMEZONE) -- The law firm of Spector, Roseman & Kodroff, P.C. announces that a class action lawsuit has been commenced in the United States District Court for the Southern District of New York against defendant Actrade Financial Technologies, Ltd. ("Actrade" or the "Company"), Amos Aharoni, Alexander Stonkus, Joseph P. D'Alessandris and David J. Askin on behalf of purchasers of the stock who purchased Actrade (NYSE:ACRT) securities during the period from March 11, 1999 through February 11, 2002 (the "Class Period").
The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between March 11, 1999 and February 11, 2002. Throughout the Class Period, Actrade issued press releases announcing record quarterly results and describing its business as providing trade financing and business-to-business financing solutions. In addition, the Company, in its fiscal year 2000 and 2001 Annual Reports filed with the SEC on Form 10-K405, represented that its loans were covered by insurance and surety bonds, which minimized the Company's risk on the loans. The representations in the press releases and Annual Reports were, according to the allegations of the complaint, materially false and misleading because the Company had loaned over $10 million to individuals, not businesses, who used the proceeds personally. In addition, according to the complaint, defendants are alleged to have failed to disclose to their insurers and sureties the nature of the personal-loans and, as a result, the Company was jeopardizing its ability to collect under the policies and surety bonds in the case of default. On February 11, 2002, Barron's published an article detailing Actrade's questionable lending practices and its alleged misrepresentations and omissions to insurers and sureties. For example, the article recounts a $6.3 million loan-default by an individual that Actrade was attempting to recruit as a broker, and which an insurer and surety refused to cover on his default because they allegedly were led to believe by Actrade that the loan was for a business purpose when in fact the individual pocketed the funds. In reaction to the Barron's article, Actrade's stock price plummeted by 45%, falling to $13.75 per share on February 11, 2002, from a $24.89 per share close on February 8, 2002 (a Friday).
If you purchased Actrade securities during the Class Period, you may, no later than April 16, 2002, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. If you have sustained substantial losses in Actrade securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via E-mail at classaction@srk-law.com. For more detailed information about the firm please visit our website at http://www.spectorandroseman.com
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania and San Diego, California, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud . As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.