CHICAGO, March 11, 2002 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that class action lawsuits are pending in various federal courts on behalf of purchasers of the following securities during the periods set forth below:
Company Class Period Enterasys Networks, Inc. 9/26/01-2/01/02 (NYSE:ETS) Juniper Networks 4/12/01-6/07/01 (Nasdaq:JNPR) Actrade Financial Technologies, Ltd. 3/11/99-2/08/02 (Nasdaq:ACRT) Nvidia Corp. 2/15/00-2/14/02 (Nasdaq:NVDA)
Much Shelist is currently investigating potential claims against these companies. If you purchased securities in any of these companies during the periods listed and wish to discuss your rights and interests in any of these matters, or if you have information relevant to the alleged misconduct described below, you may contact Carol V. Gilden or Michael E. Moskovitz at Much Shelist Freed Denenberg Ament & Rubenstein, P.C., by calling a toll-free number 1-800-470-6824, or by sending an e-mail to investorhelp@muchlaw.com. Your e-mail should refer to the company or companies that affect you. A description of the investigations follows:
Enterasys Networks, Inc. (NYSE:ETS)
Much Shelist is investigating whether Enterasys Networks and certain officers and directors violated the federal securities laws by issuing a series of material misrepresentations to the market between September 26, 2001 and February 1, 2002. Specifically, Much Shelist believes that the statements failed to disclose:
-- that Enterasys' Asia Pacific region operations, which represented
a material portion of its revenues, was improperly recognizing
revenues in violation of its accounting policies and Generally
Accepted Accounting Principles; and therefore, Enterasys'
operating results were materially misrepresented and overstated;
-- that Enterasys lacked adequate internal controls and, therefore,
was unable to ascertain its true financial condition; and
-- that, because of these improprieties, Enterasys' statements
concerning its prospects were lacking in a reasonable basis at all
times.
Enterasys waited until the close of trading on February 1, 2002, to announce that it would be delaying the release of its fourth quarter and fiscal year financial results because it was reviewing the revenue recognition practices of its Asia Pacific operations. Enterasys also announced that the United States Securities and Exchange Commission ("SEC") had initiated an investigation of Enterasys and certain affiliated companies. Following the February 1, 2002 announcement, Enterasys shares fell $6.59 to $4.21 in trading of 35.1 million shares, or 22 times the 3-month daily average, dropping the stock to its lowest closing price since May 1991. Enterasys stock suffered the second largest percentage decline in U.S. markets, reducing Enterasys' market value from $2.9 billion to $855.4 million.
Juniper Networks (Nasdaq:JNPR)
Much Shelist is investigating whether Juniper Networks and certain officers and directors violated the federal securities laws by issuing false and misleading statements regarding Juniper's financial condition. Specifically, Much Shelist believes that from April 12, 2001 through June 7, 2001, Juniper:
-- stated that it was on track to have 2Q01 revenues of greater than
$330 million and earnings per share ("EPS") of $0.25, and that
Deferred Revenue (i.e., revenue not yet recognized because
customers had not yet accepted products) had declined because
customer acceptance cycles were shorter than in the past; and
-- represented that Juniper was on track to report 2001 EPS of
$0.90-$1.00, pro forma.
Juniper's representations caused its stock to trade as high as $69.50, which allowed certain officers and directors to take advantage of the inflationary prices by selling 747,463 shares for proceeds of approximately $42.9 million.
On June 8, 2001, Juniper disclosed that its 2Q01 revenues would be much lower than previously represented and earnings would be less than half of prior estimates. Juniper also admitted that customer acceptance cycles were much longer than in the past, stretching from days to months. On this news, Juniper shares dropped to $38.02, or more than 46% lower than its period high of $69.50. Ultimately, Juniper reported a loss for 2001 and pro forma EPS of just $0.50, half of what Juniper represented, causing its stock to trade as low as $13.
Actrade Financial Technologies, Ltd. (Nasdaq:ACRT)
Much Shelist is investigating whether Actrade and certain officers and directors violated the federal securities laws by issuing a series of materially false and misleading statements to the market between March 11, 1999 and February 11, 2002. The statements, which were issued, among other places, in various press releases that announced record quarterly results and in SEC filings that represented that its loans were covered by insurance and surety bonds, which minimized the Company's risk on the loans, were false and misleading. Specifically, Much Shelist believes that the statements failed to disclose:
-- that Actrade loaned over $10 million to individuals, not
businesses, who used the proceeds personally; and
-- that Actrade did not disclose to its insurers and sureties the
nature of the personal loans and, as a result, Actrade was
jeopardizing its ability to collect under the policies and surety
bonds in the case of default.
On February 11, 2002, Barron's published an article detailing Actrade's questionable lending practices and its alleged misrepresentations and omissions to insurers and sureties. For example, the article recounted a $6.3 million loan default by an individual that Actrade was attempting to recruit as a broker, and which an insurer and surety refused to cover on his default because they allegedly were led to believe by Actrade that the loan was for a business purpose when in fact the individual pocketed the funds. In reaction to the Barron's article, Actrade's stock price plummeted 45%, falling to $13.75 per share on February 11, 2002, from a $24.89 per share close on February 8, 2002 (a Friday).
Nvidia Corp. (Nasdaq:NVDA)
Much Shelist is investigating whether Nvidia and certain of its officers and directors violated the federal securities laws. Nvidia designs, develops and markets three dimensional (3D) graphics processors and related software. Nvidia's products provide interactive 3D graphics to the mainstream personal computer market. Much Shelist believes that as part of its effort to boost the price of its stock, Nvidia misrepresented its true prospects in an effort to conceal its improper acts until certain officers and directors were able to sell at least $66 million worth of their own Nvidia stock. In order to overstate revenues and assets in its 4Q00, 1Q01, 2Q01 and 3Q01, Nvidia violated Generally Accepted Accounting Principles and SEC rules by engaging in an illegal accounting scheme that had the effect of dramatically overstating revenues and assets.
On February 14, 2002 (after the close of the market), Nvidia partially admitted that its past accounting for its prior results may be inaccurate in a press release entitled, "NVIDIA Corporation Conducting Review of Certain Transactions at the Request of the SEC." In reaction to the news, Nvidia's shares fell from $62.16 on February 14, 2002 to $53.55 per share two trading days later.
If you purchased securities in any of these companies during the periods listed and if you meet certain other legal requirements, you may move the respective court where the lawsuit(s) has been filed to serve as a lead plaintiff. You must file your motion no later than:
-- Enterasys Networks, Inc. - April 8, 2002; -- Juniper Networks - April 14, 2002; -- Actrade Financial Technologies, Ltd. - April 16, 2002; and -- Nvidia Corp. - April 21, 2002.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. section 78u-4).
Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States. The firm has successfully prosecuted cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion.
More information on these and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.