REXI & Grant Thornton (REXI's Auditor) get sued? Ouch...
dljdirect.com.
Bet that causes a few problems getting the 10k out huh? Sounds like REXI and their auditor Grant Thorton are suddenly pitted against each other trying to avoid de blame...
WEISS & YOURMAN ANNOUNCES RESOURCE AMERICA INC. NAMED IN SECURITIES CLASS ACTION BUSINESS EDITORS LOS ANGELES--(BUSINESS WIRE)--OCT. 14, 1998--WEISS & YOURMAN ANNOUNCED THAT A CLASS-ACTION LAWSUIT
LOS ANGELES--(BUSINESS WIRE)--Oct. 14, 1998--Weiss & Yourman announced that a class-action lawsuit was filed Wednesday in the U.S. District Court for the Eastern District of Pennsylvania, on behalf of purchasers of the common stock of Resource America Inc. (Nasdaq:REXI.O)("REXI," or the "company") during the period of Dec. 17, 1997, through Aug. 28, 1998, inclusive (the "Class Period").
The complaint charges REXI, certain officers and directors of the company, and Grant Thornton LLP, the company's auditors, 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, among other things, misstated the company's revenues and net income throughout the Class Period by (i) using the accretion-of-discount method of accounting with respect to certain loans; and (ii) failing to discount cash flows on subordinated interests in loans that were refinanced when the company was not entitled to do so under Generally Accepted Accounting Principles; and (iii) inflating its revenues and earnings through transactions with related parties.
Because of the issuance of a series of false and misleading
statements, the price of REXI common stock was artificially inflated during the Class Period.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firms of Weiss & Yourman, Wolf Haldenstein Adler Freeman & Herz LLP, and Savett Frutkin Podell & Ryan, P.C., each of which has extensive experience in complex litigation, particularly with respect to federal securities laws, class actions and shareholder litigation.
If you are a member of the above-defined class, you may, no later than 60 days from Oct. 14, 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 this matter, contact plaintiff's counsel, Matthew J. Zevin, Esq., of Weiss & Yourman, at 800/437-7918, or via e-mail at Mzevin@aol.com, or look on the Weiss & Yourman Web site at www.wyca.com.
You may also contact Michael Miske or Gregory M. Nespole, Esq., at the New York offices of Wolf Haldenstein Adler Freeman & Herz LLP by telephone at 800/575-0735, or via e-mail at Nespole@whafh.com or classmember@whafh.com.
You may further contact Robert Frutkin, Esq., of Savett Frutkin Podell & Ryan, P.C., by calling toll-free 800/993-3233, or via e-mail at sfprpc@op.net, or by writing Savett Frutkin Podell & Ryan, P.C., at 325 Chestnut St., Suite 700, Philadelphia, Pa. 19106.
All e-mail correspondence should make reference to Resource
America Inc.
--30--MW/la* RJ/la
CONTACT: Weiss & Yourman
Matthew J. Zevin, 800/437-7918
Mzevin@aol.com
or
Wolf Haldenstein Adler Freeman & Herz LLP
Michael Miske or Gregory M. Nespole, 800/575-0735
Nespole@whafh.com or classmember@whafh.com
or
Savett Frutkin Podell & Ryan, P.C.
Robert Frutkin, 800/993-3233
sfprpc@op.net
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