Class Action Suit #8
Abbey, Gardy & Squitieri: Notice of Pendency of Class Action Against Source Media, Inc. and Others
NEW YORK, Aug. 28 /PRNewswire/ -- The following statement was issued today by Abbey, Gardy & Squitieri, LLP.
Pursuant to Section 21D(a)(3)(A)(i) of the Securities Exchange Act of 1934, notice is hereby given that a class action lawsuit was filed on May 19, 1998, United States District Court for the Northern District of Texas, on behalf of all persons who purchased or otherwise acquired securities of Source Media Systems, Inc. (Nasdaq: SRCM - news; ''Source Media'' or the ''Company'') between September 23, 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, by, among other things, issuing to the investing public false and misleading financial statements and press releases concerning Source Media's earnings. Because of the issuance of a series of false and misleading financial statements and press release, the price of Source Media securities were artificially inflated during the Class Period.
Plaintiff seeks to recover damages on behalf of himself and all purchasers of Source Media securities during the Class Period. Excluded from the Class are the defendants, members of their immediate families, any entity in which a defendant has a controlling interest, and other related parties.
On or about September 23, 1997, Source Media announced that it signed two definitive agreements to purchase certain of the assets of Brite Voice Systems Inc. (Nasdaq:BVSI - news; ''Brite'') and certain of the assets of Voice News Network (''VNN''), for a combined total of over $44 million.
The assets purchased from Brite and VNN consisted primarily of contract rights and equipment used in the company's voice information services business.
The complaint alleges that, in connection with the Brite and VNN acquisitions, defendants wrongfully concealed from their shareholders lost business and assets.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Abbey, Gardy & Squitieri, LLP which has significant experience and expertise prosecuting class actions on behalf of investors and shareholders.
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 interest with respect to these matters, please contact plaintiff's counsel, Mark C. Gardy or Nancy Kaboolian of Abbey, Gardy & Squitieri, LLP at 800-889-3701 or 212-889-3700 or by e-mail at nkaboolian@a-g-s.com.
SOURCE: Abbey, Gardy & Squitieri, LLP |
