To: Lazarus Long who wrote (21415 ) 8/11/1998 4:56:00 PM From: Bird Read Replies (2) | Respond to of 50264
It seems Smartalk Tele.' Inc. was THE worst hit stock today and happens to be in DGIV's industry. Their problem, as indicated in today's press release below, involves "misleading the public by claiming that Smartalk was expanding its business opportunities through favorable distribution agreements with other companies" Sound familiar? NASDAQ as of 08/11/98 16:09 ET ÿ Symbol Company Last Volume Change ÿ SMTK SMARTALK TELESERVICES INC COM ÿ 7 5/32 13724300 -9 15/32 ÿ NEW YORK--(BUSINESS WIRE)--Aug. 11, 1998--A class action lawsuit is being filed today in the U.S. District Court for the Eastern District of New York by the law firm of Weiss & Yourman on behalf of purchasers of SmarTalk Teleservices, Incorporated (NASDAQ:SMTK.O) common stock between August 14, 1997 and August 10, 1998 (the "Class Period") to recover damages caused by defendants' violations of the Securities Exchange Act of 1934. The complaint alleges that defendants, while amassing over $50 million in proceeds from insider sales of the SmarTalk stock, concealed from the investing public the fact that they had been committing gross violations of the federal securities laws, including misleading the public by claiming that SmarTalk was expanding its business opportunities through favorable acquisitions and distribution agreements with other companies and that the Company was generating "record" financial results. The complaint alleges that SmarTalk failed to disclose to the investing public that: a) they artificially recognized the sales figures announced during the Class Period; b) they were recognizing revenues prematurely and improperly in violation of GAAP; c) SmarTalk's distributors were not selling prepaid cards at the levels represented; d) SmarTalk's management was encountering severe difficulties in integrating the companies acquired; and e) defendants were not controlling costs. On August 10, 1998, SmarTalk announced that it was postponing the release of its quarterly results due to SmarTalk's auditors questioning SmarTalk's accounting methods. This news caused SmarTalk shares to drop over 60 percent on extraordinary volume. If you are a member of the class described above and wish to serve as class representative, you have until 60 days from the date of this notice in which to move the Court to serve as lead plaintiff, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. Plaintiff's counsel are preparing a database of those shareholders who have lost money due to SmarTalk's alleged securities fraud and wish to participate in this action. If you wish to participate in the suit, or have any questions concerning this notice, or your rights or interests with respect to this matter, please contact plaintiff's counsel, James Tullman or Behram Parekh of Weiss & Yourman via e-mail at wyinfo@wyca.com, by calling 1-800-437-7918, or on the Internet at www.wyca.com or Joe Weiss or David Katz of Weiss & Yourman at 888-593-4771. Please include your name and address in all correspondence. --30--rc/ny* CONTACT: Weiss & Yourman James Tullman or Behram Parekh, 1-800-437-7918 wyinfo@wyca.com or Joe Weiss or David Katz, 888-593-4771 www.wyca.com KEYWORD: NEW YORK INDUSTRY KEYWORD: TELECOMMUNICATIONS COMPUTERS/ELECTRONICS COMED Today's News On The Net - Business Wire's full file on the Internet with Hyperlinks to your home page. URL: businesswire.com Copyright 1998, Business Wire