Class Action Against MGMA:
Rabin & Peckel LLP Announces Class Action Complaint Against Metro Global Media, Inc. and Certain of Its Officers and Directors Alleging Violations of Federal Securities Law
NEW YORK--(BUSINESS WIRE)--Nov. 23, 1999--The following is an announcement by the law firm of Rabin & Peckel LLP:
Class Action Complaint Against Metro Global Media, Inc. and Certain of Its Officers and Directors Alleging Violations of Federal Securities Law Filed by Rabin & Peckel
A class action complaint has been filed in the United States District Court for the District of Rhode Island on behalf of all persons or entities who purchased or otherwise acquired the securities of Metro Global Media, Inc. (``Metro Global' or the ``Company') (Nasdaq:MGMA - news) between September 13, 1996 and September 13, 1999, inclusive (the ``Class Period').
The lawsuit against Metro Global and certain of its present and former officers and directors for violations of the Securities Exchange Act of 1934 arises out of a series of false and misleading statements concerning the Company's reported financial results made during the Class Period.
These reported financial results were materially inflated as a result of Metro Global's failure to properly record embedded interest related to its convertible preferred stock and debentures, improper amortization of its film library, and improper classification of a related party transaction, all in violation of generally accepted accounting principles (``GAAP'), contrary to the Company's representation in its financial statements. On September 14, 1999, the Company announced that these accounting improprieties required a restatement of its financial statements for fiscal years 1996, 1997, and 1998, which would reduce the earnings reported for these years.
The Complaint alleges that as a result of these false and misleading statements the price of Metro Global securities were artificially inflated throughout the Class Period causing plaintiffs and the other members of the Class to suffer damages. Trading in the Company's stock has been suspended since September 14, 1999. During the Class Period, it is alleged, defendants were motivated to artificially inflate the price of its securities because of the Company's reliance on its common stock to raise substantial sums of money and to pay its debts. The Company frequently used its stock as currency, including to raise over $2 million and to pay debts of $230,000 in fiscal year 1998, and to raise over $10.7 million in fiscal year 1999.
Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel 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.
If you purchased or otherwise acquired Unisys [I think they meant to type Metro Global Media instead of Unisys]securities during the Class Period described above, you may, no later than sixty (60) days from November 23, 1999, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this announcement, or your rights or interests, please contact plaintiff's counsel, Elana M. Bourkoff, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, by e-mail at email@rabinlaw.com, or via the firm's website www.rabinlaw.com.
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Contact:
RABIN & PECKEL LLP
Elana M. Bourkoff
800/497-8076
212/682-1818
www.rabinlaw.com
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