Milberg Weiss Files Class Action Suit Against SureBeam Corp.
Business Editors/Financial Analysts
SAN DIEGO--(BUSINESS WIRE)--Aug. 27, 2003--Milberg Weiss (http://www.milberg.com/cases/surebeam/) today announced that a class action has been commenced in the United States District Court for the Southern District of California on behalf of purchasers of SureBeam Corporation ("SureBeam") (NASDAQ:SURE)(NASDAQ:SUREE) publicly traded securities during the period between March 16, 2001 and Aug. 20, 2003 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffs' counsel, William Lerach or Darren Robbins of Milberg Weiss at 800-449-4900 or via e-mail at wsl@milberg.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at milberg.com. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges SureBeam and certain of its officers and directors with violations of the Securities Exchange Act of 1934. SureBeam provides electronic irradiation systems and services for the food industry. The complaint alleges that during the Class Period, defendants caused SureBeam's shares to trade at artificially inflated levels through the issuance of false and misleading financial statements. As a result of this inflation, SureBeam was able to complete an initial public offering of 6.7 million shares, raising net proceeds of $60 million on March 16, 2001.
On July 30, 2003, the Company issued a press release entitled "SureBeam to Delay Earnings Announcement." The press release stated in part "SureBeam Corporation announced today that it is delaying the release of its second quarter earnings from its planned date of July 31, 2003. As previously reported by the Company in its Current Report on Form 8-K/A filed on June 11, 2003, on June 9, 2003, Deloitte & Touche LLP ("Deloitte & Touche") was named as the Company's independent auditor for the year ending December 31, 2003, replacing KPMG LLP. The Company's management has not completed preparation of the financial statements for the second quarter and Deloitte & Touche has not yet completed its review of those statements."
On Aug. 12, 2003, the Company issued another press release entitled "SureBeam to Delay Earnings Announcement." The press release stated in part: "SureBeam Corporation announced today that it is further delaying the release of its second quarter earnings from its planned release date of August 12, 2003 ... Deloitte & Touche LLP ("Deloitte & Touche") has not completed its reviews of the Company's financial statements."
On Aug. 21, 2003, the Company issued a press release entitled "SureBeam Dismisses Auditor; Seeks to Resolve Issues." The press release stated in part: "SureBeam Corporation announced today that it is dismissing its independent public auditor Deloitte & Touche LLP ("Deloitte & Touche") ... The Company believes that its financial statements which were audited by national accounting firms and filed with the Securities and Exchange Commission, were appropriate based on the facts and circumstances that existed at the time. However, the Board of Directors has determined that the issues raised by Deloitte & Touche are sufficiently important and that it wants these issues to be definitively resolved." The stock dropped to $1.55 per share on this news.
Plaintiffs seek to recover damages on behalf of all purchasers of SureBeam publicly traded securities during the Class Period (the "Class"). The plaintiffs are represented by Milberg Weiss Bershad Hynes & Lerach LLP, who has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Milberg Weiss Bershad Hynes & Lerach LLP, a 190-lawyer firm with offices in New York, San Diego, San Francisco, Los Angeles, Boca Raton, Fla., Seattle and Philadelphia, is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of World War II and other human rights violations, and has been responsible for more than $30 billion in aggregate recoveries. The Milberg Weiss Web site (http://www.milberg.com) has more information about the firm.
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CONTACT: Milberg Weiss Bershad Hynes & Lerach LLP
William Lerach, 800-449-4900
wsl@milberg.com
TICKERS: NASDAQ:SURE NASDAQ:SUREE
KEYWORD: CALIFORNIA
INDUSTRY KEYWORD: LEGAL/LAW CLASS ACTION LAWSUITS |
