NEW YORK, May 24, 2002 (PRIMEZONE) -- Kaplan Fox & Kilsheimer LLP has filed a class action suit against Arthur Andersen LLP ("AA") in the United States District Court for the Northern District of Texas, Dallas Division, on behalf of all persons who purchased the common stock of Intelect Communications, Inc. n/k/a Teraforce Technology Corp. (OTCBB:TERA) ("Intelect" or the "Company") between March 31, 1998 and November 17, 1998 (the "Class Period").
The United States District Court for the Northern District of Texas, Dallas Division, is located at 14A20 Earle Cabell Federal Building, 1100 Commerce Street, Dallas, Texas 75242.
This case arises out of the same set of facts as another case our firm is prosecuting for lead plaintiffs, entitled Umsted v. Intelect Communications, Inc. et al., Civ. No. 3-99-CV-2604, which is also pending in the U.S. District Court, Northern District of Texas, Dallas Division. That case, which was filed in November 1999 and names Intelect and three of its current and former executives as defendants, is currently in the discovery phase.
The recently filed case is brought only against AA, Intelect's auditor during the Class Period. The lawsuit charges AA with violations of the securities laws and regulations of the United States. The Complaint alleges, among other things, that AA's audit of Intelect for the year ended December 31, 1997 was conducted in violation of generally accepted auditing standards ("GAAS"), in that AA falsely represented that Intelect's financial statements for that year were presented in conformity with generally accepted accounting principles and that they had been audited in accordance with GAAS.
Plaintiffs seek to recover damages on behalf of all persons who purchased Intelect common stock during the Class Period. Plaintiffs are represented by Kaplan Fox & Kilsheimer LLP which has many years of experience in prosecuting investor class actions and extensive experience in actions involving financial reporting and management fraud. For more information about Kaplan Fox & Kilsheimer, you may visit our website at www.kaplanfox.com.
You may move the court, no later than 60 days from today to serve as lead plaintiff. In order to serve as lead plaintiff, you must meet certain legal requirements.
If you have any questions about this Notice, the action, your rights, or your interests, please e-mail us at mail@kaplanfox.com or contact:
Jonathan K. Levine, Esq. Christine M. Fox, Esq. 805 Third Avenue - 22nd Floor New York, NY 10022 (800) 290-1952 (212) 687-1980 Fax: (212) 687-7714 E-mail address: mail@kaplanfox.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.