Date: 6/29/98 4:07:21 PM EST
Time to Bring Action Against International Automated Systems Inc. and Neldon P. Johnson For Purchasers of the Company's Stock Between April 3, 1996 Through and Including June 27, 1996 No Longer Tolled
WHITE PLAINS, N.Y.--(BUSINESS WIRE)--June 29, 1998--The Court in Serfaty et al. v. International Automated Systems Inc. and Neldon P. Johnson, Civil No. 2:96-CV-583C (D. Utah) has denied plaintiffs' motion for class certification.
Plaintiffs sought certification of a class of purchasers of International Automated Systems Inc. ("IAS" or the "Company") shares between April 3, 1996 through and including June 27, 1996, who allegedly purchased the Company's stock at inflated prices as a result of defendants' allegedly false and misleading statements concerning the Company's allegedly revolutionary Digital Wave Modulation technology. Defendants allegedly represented that they would demonstrate on June 27, 1996, an operational prototype and 6,000,000 baud modem of their alleged technology. After defendants failed to demonstrate an operational prototype and 6,000,000 baud modem, the price of the Company's shares dropped 57 percent on June 28, 1996 from $40 to $17.50 per share.
The District Court, in its June 2, 1998 opinion, denied plaintiffs' motion on the ground that the market for IAS shares was not efficient and consequently, that plaintiffs and the proposed class could not rely on the fraud on the market theory of reliance in pursuing their claims alleging violations of the federal securities laws.
If you are a member of the putative class, please be advised that the time for you to bring an individual claim is no longer tolled. Plaintiffs will be seeking leave to file an amended complaint on behalf of individual plaintiffs which, among other things, adds further claims.
If you have any questions, please contact: Sherrie Brown, Esq. at Lowey Dannenberg Bemporad & Selinger, P.C., The Gateway, One North Lexington Avenue, White Plains, N.Y., 10601, 914/997-0500, E-mail: ldbs@westnet.com.
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CONTACT:
Lowey Dannenberg Bemporad & Selinger, P.C.
Sherrie Brown, Esq., 914/997-0500
E-mail: ldbs@westnet.com. |
