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Technology Stocks : Source Media SRCM -- Ignore unavailable to you. Want to Upgrade?

To: Rajiv who wrote (1082)	8/27/1998 8:26:00 PM
From: Rajiv	Read Replies (1) \| Respond to of 3015

Class Action Suit #5 Beatie and Osborn LLP Files Securities Fraud Action Against Source Media, Inc. and Certain of its Officers and Directors NEW YORK, Aug. 27 /PRNewswire/ -- A class action has been commenced in the United States District Court for the Northern District of Texas on behalf of all persons who purchased the common stock of Source Media, Inc. (''Source Media'' or the ''Company'') (Nasdaq: SRCM - news) from September 23, 1997 to August 14, 1998, inclusive (the ''Class Period''). The complaint charges Source Media and others with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Specifically, the complaint alleges that during the Class Period, defendants failed to disclose that many of its customer contracts acquired pursuant to two Asset Purchase Agreements, dated September 23, 1997 between the Company and Brite Voice, Inc. (''Brite''), and the Company and Voice News Network, Inc.(''VNN''), were not transferrable or were terminable at will by the customer with little or no notice to Source Media. Following the consummation of the transaction with Brite and VNN, many of the customer contracts acquired for over $44.6 million were not transferred to Source Media and/or were terminated by customers. Defendants' failure to disclose that Source Media was losing a significant number of customer contracts at an alarming rate caused the market price of Source Media securities to be artificially inflated during the Class Period. Each of the defendants either knew or recklessly disregarded that failure to disclose the loss of a significant number of customer contracts that had been acquired from Brite and VNN would adversely affect the integrity of the market for Source Media securities, and that investors would be deceived into purchasing Source Media securities at artificially inflated prices. Defendants concealed the risks the Company faced and difficulties the Company was already facing in connection with the acquired customer contracts in an effort to obtain much needed capital financing, to maintain the confidence of the investing public, and to allow several insiders to sell substantial portions of their Source Media holdings at prices inflated by defendants' fraud. A copy of the Complaint filed with the court detailing the above described allegations may be obtained by contacting the law firm of Beatie and Osborn LLP. Plaintiff seeks damages on behalf of all class members and is represented by Beatie and Osborn LLP, a law firm with significant experience and expertise prosecuting class actions on behalf of investors and shareholders in federal and state courts throughout the United States, particularly those involving financial reporting improprieties. If you are a member of the class who purchased Source Media securities during the period between September 23, 1997 and August 14, 1998, you may move the court no later than October 20, 1998 to serve as a representative plaintiff in this case. In order to serve as a representative plaintiff, however, you must meet certain legal standards. To assure that you will be included in a list of class members, or if you wish to discuss this action, have questions concerning your rights or interests with respect to this matter or if you have information you wish to provide to Beatie and Osborn LLP, please contact Eduard Korsinsky, Esq. toll-free at 800-891-6305, or 212-888-9000 in New York City, 599 Lexington Avenue, 42nd Floor, New York, New York 10022, via fax at 212-888-9664 or via e-mail at bandolaw@aol.com.