BALA CYNWYD, Pa, Oct. 11, 2001 (PRIMEZONE) -- Schiffrin & Barroway, LLP announced today that it recently filed lawsuits on behalf of shareholders of Clarent Corp., PSI Technologies Holdings, Inc., Engage, Inc. and Internet Security Systems, Inc. for violations of the federal securities laws.
If you purchased the securities of any of the companies listed below during the respective class periods, you may be a member of the class and have until the date specified to move the court to become the lead plaintiff. For more information on a particular lawsuit and to view the complaint, you may visit our Website at www.sbclasslaw.com. To learn more about your rights and interests in these cases and your ability to potentially recoup your losses, please contact Schiffrin & Barroway directly at 888-299-7706 (toll free) or 610-667-7706, fax number 610-667-7056 or by e-mail at info@sbclasslaw.com.
CLARENT CORP. (Nasdaq:CLRN) (Class Period: 04/20/01 - 08/31/01). The complaint charges Clarent and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that on Sept. 4, 2001, Clarent announced in a press release that it had discovered information suggesting that its previously reported revenues for the first and second quarters of fiscal 2001 may have been materially overstated, and that the Company's Board of Directors was forming a special committee to investigate a number of transactions that placed in question the Company's historical financial results. The Company also stated that its first quarter 2001 revenues, as released on April 19, 2001, and its second quarter 2001 revenues, as released on July 19, 2001, will be reduced and the related net losses will increase upon conclusion of the review. In addition, the Company anticipates that its revenues for the second half of fiscal 2001 and for fiscal 2002 will be substantially below previously anticipated levels, and that the related losses will be significantly larger than expected. The Company also announced that several of its officers had been placed on administrative leave. On this news trading halted at $5.37. The complaint was filed in the U.S. District Court for the Northern District of California. The lead plaintiff motion must be filed no later than November 4, 2001.
PSI TECHNOLOGIES HOLDINGS, INC. (Nasdaq:PSIT) (Class Period: 03/15/00 - 12/06/00). On or about March 15, 2000, PSIT commenced an initial public offering of 3,500,000 of its shares of common stock at an offering price of $16 per share (the "PSIT IPO"). In connection therewith, PSIT filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) defendants had solicited and received excessive and undisclosed commissions from certain investors in exchange for which defendants allocated to those investors material portions of the restricted number of PSIT shares issued in connection with the PSIT IPO; and (ii) defendants had entered into agreements with customers whereby defendants agreed to allocate PSIT shares to those customers in the PSIT IPO in exchange for which the customers agreed to purchase additional PSIT shares in the aftermarket at pre-determined prices. As alleged in the complaint, the SEC is investigating underwriting practices in connection with several other initial public offerings. The complaint was filed in the U.S. District Court for the Southern District of New York. The lead plaintiff motion must be filed no later than November 9, 2001.
ENGAGE, INC. (Nasdaq:ENGA) (Class Period: 07/19/99 - 12/06/00). On or about July 19, 1999, Engage commenced an initial public offering of 6,000,000 of its shares of common stock at an offering price of $15 per share (the "Engage IPO"). In connection therewith, Engage filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. As alleged in the complaint, the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) Goldman & Bear Stearns had solicited and received excessive and undisclosed commissions from certain investors in exchange for which Goldman & Bear Stearns allocated to those investors material portions of the restricted number of Engage shares issued in connection with the Engage IPO; and (ii) Goldman & Bear Stearns had entered into agreements with customers whereby Goldman & Bear Stearns agreed to allocate Engage shares to those customers in the Engage IPO in exchange for which the customers agreed to purchase additional Engage shares in the aftermarket at pre-determined prices. As alleged in the complaint, the SEC is investigating underwriting practices in connection with several other initial public offerings. The complaint was filed in the U.S. District Court for the Southern District of New York. The lead plaintiff motion must be filed no later than November 9, 2001.
INTERNET SECURITY SYSTEMS, INC. (Nasdaq:ISSX) (Class Period: 04/01/01 - 07/02/01). The complaint charges ISS and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that on April 18, 2001, ISS reported its 23rd consecutive quarter of growth. For the first quarter of 2001, it claimed revenues in excess of $61 million and net income of $6.5 million or $0.15 per share. ISS claimed that the Company's "financial performance continued to show strength and our solid execution and focus on expense control enabled us to meet our profit guidance provided at the beginning of the quarter." ISS claimed on April 18, 2001 that its guidance for the second quarter ending June 30, 2001 was to produce revenues between $64 and $67 million and earnings in the range of $0.15 per diluted share, even though defendants knew they could not achieve these numbers. ISS claimed in its April 18, 2001 press release that "the public can continue to rely on the expectations published in its earnings release and web site as being its current expectations on matters covered, unless ISS publishes a notice stating otherwise." Defendants, who were in control of ISS during the class period, knew that their business was slowing down, because they received financial reports on a frequent basis, and knew that they had too many employees in view of the slowdown.
On July 2, 2001, after the quarter had ended, ISS issued a press release in which it stated that ISS' management expected revenues in the range of $50-52 million, not $64-67 million, and a loss per diluted share between $0.00 to $0.02, rather than earnings of $0.15 to $0.16. Just after the July 18, 2001 press conference in which ISS released its actual numbers, and admitted that it had over hired and over indulged on fringe benefits, travel and entertainment, ISS laid off 12% of its work force, confirming what its executives had known or recklessly disregarded throughout the Class Period, that it had too many employees and greater expenses than it could afford, given its level of sales. Class members who had bought ISS shares during the Class Period -- when ISS told them they could rely on its guidance -- found out on the morning of July 3, 2001 that ISS had tumbled more than 40 percent. The complaint was filed in the U.S. District Court for the Northern District of Georgia. The lead plaintiff motion must be filed no later than November 28, 2001.
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder in any of the companies listed above and would like to be a lead plaintiff in one of these securities class actions, please contact Schiffrin & Barroway at 888-299-7706.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca