Class Action Suit #3
Milberg Weiss Announces Source Media Inc. Named in Securities Class Action
NEW YORK--(BUSINESS WIRE)--Aug. 27, 1998--Milberg Weiss announces that notice is hereby given that a class action lawsuit was filed on August 26, 1997, United States District Court for the District of Texas, Dallas Division, on behalf of all persons who purchased the common stock of Source Media Inc. (NASDAQ:SRCM - news; ''Source Media'' or the ''Company''), between October 30, 1997, and August 14, 1998, inclusive (the ''Class Period'').
The complaint charges Source Media and certain officers and directors of the Company during the relevant time period with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The complaint alleges that defendants issued a series of materially false and misleading statements that failed to disclose the impairment of the Company's assets, the severely limited utility of the Company's interactive technology and the effect these adverse undisclosed conditions would ultimately have on the Company's financial condition, operations and liquidity.
Because of the issuance of a series of false and misleading statements, the price of Source Media common stock was artificially inflated during the Class Period. Prior to the disclosure of the adverse facts described above, certain officers and directors of Source Media sold significant amounts of Source Media stock to the unsuspecting public. These sales generated proceeds of over $33 million.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Milberg Weiss Bershad Hynes & Lerach LLP (''Milberg Weiss''), among others. Milberg Weiss maintains offices in New York City, San Diego, Los Angeles and San Francisco and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in numerous important actions on behalf of defrauded investors, and is responsible for a number of outstanding recoveries which, in the aggregate, total approximately $2 billion. For more information about Milberg Weiss, please visit our website at www.milberg.com. Tydings & Rosenberg and Rosen & Associates similarly have substantial experience in the prosecution of complex litigation.
If you are a member of the class described above, you may, not later than sixty days from August 21, 1998, move the Court to serve as lead plaintiff of the class, if you so choose. In order 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 notice or your rights or interests with respect to these matters, please contact Milberg Weiss (Steven G. Schulman or Samuel H. Rudman) at One Pennsylvania Plaza, 49th Floor, New York, New York 10119-0165.
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Contact:
Milberg Weiss Bershad Hynes & Lerach LLP
Shareholders Relations Dept.
E-Mail: classact@microweb.com.
1-800-320-5081 |
