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You
purchased a company's stock following its latest glowing
earnings report. You (or your broker) picked a winner and
the
stock has risen steadily. But this morning, the stock is
dropping
like a rock after the company announced that it
"improperly
recognized income" last year and that it will be forced
restate
its financial results for this period. The company also
indicated
several insiders recently had sold a large amount of stock and
its
chief financial officer has resigned. These financial
"irregularities"
have just cost you 40 to 60 percent of your investment overnight.
It is clear that you purchased the stock at “an artificially
inflated
price” -- you paid too much for the stock when you
purchased
it because its market price was based on false financial data
that
the company was disseminating at that time. In any
securities
class action lawsuit, the time period where the stock price
was
artificially inflated is the so-called "Class Period."
If you purchased
the stock during the Class Period, you can initiate or
participate
in a class action lawsuit as long as you did not sell your
stock
during the period for a profit. If you purchased the stock
before
or after that time, then you don’t have a claim, even though
you
may have suffered a loss.
Below are some recent cases that have been filed and the
relevant Class Periods.
Apollo Group, Inc. (NASDAQ: APOL)
Class Period: March 29, 2002 to October 17, 2006.
BP Prudhoe Bay Royalty Trust (BPT)
Class Period: March 15, 2006 to August 4, 2006.
Connetics (NASDAQ: CNCT)
Class Period: June 28, 2004 to May 3, 2006.
Jabil Circuit, Inc. (NYSE: JBL)
Class Period: September 19, 2001 to June 21, 2006.
Marvell Technology Group (NASDAQ: MRVL)
Class Period: October 3, 2001 to October 3, 2006.
Meade Instruments Corp. (NASDAQ: MEAD)
Class Period: September 27, 2005 to August 29, 2006.
Presstek, Inc. (NASDAQ: PRST)
Class Period: July 27, 2006 to September 29, 2006.
Why Investors Use Class Actions
Securities class action lawsuits are a tool investors may use
to
help get their money back when they feel they've been
victimized
by corporate fraud. Don't blame your broker (if you used
one)
because the company "cooked the books." Your broker,
except
in extremely rare circumstances, had nothing to do with the
"financial irregularities" that are now coming to light.
Presumably,
he or she performed adequate due diligence. The company
defrauded the entire market, including the very best
analysts.
All individuals and institutions that purchased based on the
false financial reporting of the company paid too much.
For investors to get at least a portion of their money back,
your only option is securities class action litigation.
Typically,
except for perhaps a few institutional investors that may
have
losses in the millions, it is not practical or economically
feasible
for individuals to sue the company individually. A securities
class
action complaint is a collective action to recover the losses of
all
individuals and institutions that lost money because of the
company's
fraud. In a subsequent e-letter, we will discuss your options if
you
think you are affected.
If you are an affected shareholder in any of the companies
listed
above (details available at www.securitiessleuth.com), you
may
wish to contact us at info@securitiessleuth.com or
877.511.4717
to discuss your options.
Now with respect to securities cases that have recently
settled.
If you are an affected investor – you purchased any of
these
stocks during the relevant class period - you may wish to
contact
the claims administrator to obtain additional information.
Remember,
if you don’t submit your claim form, you won’t receive your
share
of any settlement.
Ask Jeeves (ASKJ)
Class Period: November 18, 1999 to May 16, 2000
Claims Deadline: February 5, 2007
Claims Administrator: Rust Consulting
Broadwing, Inc. (BRW)
Class Period: January 17, 2001 to May 21, 2002
Claims Deadline: November 30, 2006
Claims Administrator: Garden City
Information regarding other recent settled cases, including
the
cases listed below can be found at www.securitiessleuth.com.
Advanced Marketing Services
King Pharmaceuticals, Inc.
MasTec, Inc.
McLeodUSA, Inc.
Again you should contact the claims administrator (rather than
us).
However, if you are an affected investor in any of the
companies
under investigation, you many wish to contact us so that you
can
consider your options.
Likewise, if you happen to be aware of corporate restatements
or
other financial fraud -- especially if you're a victim -- you're
encouraged
to contribute to the Sleuth by giving your own tip-offs at
www.securitiessleuth.com or by e-mailing info@securitiessleuth.com.
You can also call Mark McNair at 877-511-4717. If you have a
friend
or colleague you think would benefit from The Sleuth, please
pass
along this issue and ask them to sign up at
www.cartville.com/app/join.asp?MerchantID=47994.
Warmest regards,
Mark McNair
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