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Technology Stocks : Corel Corp. -- Ignore unavailable to you. Want to Upgrade?

To: Mike Beck who wrote (4831)	2/23/1998 2:41:00 PM
From: R.S. Blum	Read Replies (2) \| Respond to of 9798

Monday February 23, 1:51 pm Eastern Time Company Press Release Wechsler Harwood Announces Class Action Against Corel Corp. NEW YORK--(BUSINESS WIRE)--Feb. 23, 1998--Notice is hereby given that on February 20, 1998, a securities class action lawsuit was filed in the United States District Court for the Eastern District of New York against Corel Corp. (''Corel'' or the ''Company'')(NASDAQ: COSFF - news) and certain of its officers on behalf of all persons who purchased or otherwise acquired shares of Corel common stock at artificially inflated prices (the ''Class'') between March 26, 1997 and January 20, 1998 (the ''Class Period''). The complaint alleges that defendants violated the federal securities laws (Sections 10(b) and 20(a) of the Securities Exchange Act of 1934) by misrepresenting or failing to disclose material information about Corel's financial condition. The complaint alleges that defendants issued false and misleading press releases and financial statements for the first three quarters of fiscal 1997. In particular, plaintiff alleges that defendants (a) failed to disclose that they were overstating Corel's reported profits by, among other things, inflating reported revenue and earnings through improperly recognizing revenue on technology exchange transactions, and (b) overstated revenues and earnings, and understated reserves in connection with sales to distributors who had no obligation to keep or pay for the products. As a result of defendants' false and misleading statements and material omissions, the price of Corel's stock was artificially inflated during the Class Period, such that persons who purchased or otherwise acquired common stock during the Class Period were damaged by overpaying for the stock. The complaint also alleges that high-ranking Corel insiders disposed of thousands of shares of their individual holdings of Corel common stock during the Class Period at artificially inflated prices, netting themselves millions of dollars in proceeds from the sales. On January 20, 1998, the end of the Class Period, the Company announced its financial results for the fourth quarter of fiscal 1997, and the restatement of its results for the first three quarterly periods of fiscal 1997. In that release, defendants reported that the restatement was required because of, among other reasons, the acquisition of Java technologies through previously undisclosed ''technology exchange transactions during the first three quarters of fiscal 1997.'' On that date, the price of Corel's stock closed at $1 27/32 per share, down from a Class Period high of $6 7/8 per share. Plaintiff seeks to recover damages on its own behalf and on behalf of all persons who purchased or otherwise acquired shares of Corel's common stock. Plaintiff is represented in this class action by the New York law firm of Wechsler Harwood Halebian & Feffer LLP and the Connecticut law firm of Schatz & Nobel, P.C., both of which have extensive experience representing shareholders in class actions and have served as lead counsel on behalf of shareholders in many such actions. The reputation and expertise of both firms in shareholder and other class actions have been repeatedly been recognized by the courts. If you are a member of the class described above, you may, not later than 60 days from the date of this notice, move the court to serve as a lead plaintiff, provided you 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 this matter, please contact Robert I. Harwood, Esq. or Jeffrey M. Haber, Esq. at Wechsler Harwood Halebian & Feffer LLP, 488 Madison Avenue, New York, New York 10022, by contacting us through our web site at whhf.com or calling at (212) 935-7400, or Andrew M. Schatz, Esq. or Jeffrey S. Nobel, Esq., at Schatz & Nobel, 216 Main Street, Hartford, Connecticut 06106, (860) 493-6292.