CHICAGO, June 17, 2002 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that class action lawsuits are pending in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of Edison Schools Inc. ("Edison Schools" or the "Company") (Nasdaq:EDSN) between November 11, 1999 and May 14, 2002, inclusive ("Class Period").
It has been alleged that Edison Schools; Chris Whittle, President and CEO; Adam Field, Chief Financial Officer; and Christopher Cerf, Chief Operating Officer, violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder by issuing false and misleading statements concerning Edison School's business and financial condition during the Class Period.
According to the allegations, throughout the Class Period, Edison Schools issued numerous quarterly press releases reporting the Company's supposedly growing revenue stream and increasing income. Such representations were repeated in reports filed with the Securities and Exchange Commission ("SEC"). It has been alleged that these representations were materially false and misleading because Edison Schools was improperly recognizing revenue by recognizing as revenue monies that were remitted to their clients, comprised of school districts and charter schools, even though the Company did not receive this money. Accordingly, the Company's revenues and other financial data reported throughout the Class Period were materially false and misleading. On May 14, 2002, Edison Schools revealed that it had been the subject of a SEC investigation and has entered into a settlement with the SEC under which it agreed to reclassify the revenues that the Company had reported for numerous quarters. At the time of the disclosure, the common stock of Edison Schools was trading at $1.50 to $2 per share, after reaching a Class Period high of $36.75 per share.
Much Shelist is currently investigating these claims. If you wish to discuss your rights and interests, or if you have information relevant to the lawsuit, 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@muchshelist.com. Your e-mail should refer to Edison Schools.
If you purchased Edison Schools securities during the Class Period and if you meet certain other legal requirements, you may file a motion in the court where the lawsuit has been filed to serve as a lead plaintiff. You must file your motion no later than July 15, 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 this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca