BALA CYNWYD, Pa., Oct. 23, 2002 (PRIMEZONE) -- A shareholder sued Concord EFS, Inc. ("Concord") (Nasdaq:CEFT) claiming that the company misled investors about its business and financial condition, as alleged in a complaint filed by the law firm of Schiffrin & Barroway, LLP.
The complaint was filed in the U.S. District Court for the Western District of Tennessee (02-2735) and seeks damages for violations of federal securities laws on behalf of all investors who bought Concord EFS, Inc. securities between October 30, 2001 and September 4, 2002 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Concord EFS, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint alleges that the Tennessee-based Concord EFS, Inc. and its top officers issued false and misleading statements and concealed the truth about the Company's results and business in order to allow Concord stock to trade at artificially inflated levels. Defendants repeatedly misrepresented the strength of Concord's operating performance and its ability to post 30%-35% earnings per share growth in order to prop up the price of Concord stock so that defendants could complete acquisitions using Concord's stock as currency and sell off 5.4 million of their own Concord shares at prices as high $32.07 per share, for over $160 million in proceeds.
The truth, however was that the Company's business was not growing as represented, but rather was suffering from increased costs and declining margins. The "record" growth and profits defendants reported were phony, resulting from the inclusion of non-operating gains in its results and the exclusion of operating expenses from its reported results. These manipulations allowed Concord to report favorable results despite the fact that its business operations were not as strong as represented.
Then, on September 5, 2002, Concord shocked the market with news that its CEO was stepping down and that its 2002 and 2003 earnings would be much lower than represented. On this news, Concord's stock dropped to $12.60 per share. Concord's stock price has fallen more than 60% from its Class Period high of more than $35 per share.
If you purchased Concord EFS, Inc. securities between October 30, 2001 and September 4, 2002, you may be a member of the class and have until November 8, 2002 to move the court to become a lead plaintiff. To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.