LITTLE ROCK, Ark., Jan. 11, 2002 (PRIMEZONE) -- The deadline for purchasers of StarMedia Networks Inc. ("StarMedia" or the "Company") (Nasdaq:STRME) publicly traded securities to move for lead plaintiff in a securities fraud class action recently brought against the Company is rapidly approaching. If you purchased StarMedia securities between April 11, 2000 and November 19, 2001, inclusive (the "Class Period"), and you wish to be a lead plaintiff in the case, you must move to serve as lead plaintiff by filing a motion in the United States District Court for the Southern District of New York by January 22, 2002. A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's Website at http://www.classlawyer.com/pr/starmedia.pdf.
The complaint, filed by a client of the Law Firm of Cauley Geller Bowman & Coates, LLP, charges that defendants (StarMedia, Fernando J. Espuelas (CEO and Chairman) and Steven J. Heller (Chief Financial Officer) violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations the market between April 11, 2000 and November 19, 2001 concerning the Company's financial performance. The complaint alleges that StarMedia reported artificially inflated financial results in press releases and filing made with the SEC by improperly recognizing revenue in violation of Generally Accepted Accounting Principles ("GAAP"). Specifically, the complaint alleges that two of the Company's primary subsidiaries, AdNet S.A. de C.V. and StarMedia Mexico, S.A. de C.V., had engaged in improper accounting practices which had the effect of materially overstating StarMedia's reported revenues and earnings by at least $10 million. On November 19, 2001, as alleged in the complaint, StarMedia issued a press release announcing that based on the "preliminary" results of an internal investigation into its accounting practices, it expects to restate its financial statements for the fiscal year 200 and the first two quarters of 2001 and that those financial statements should not be relied upon. The Company further reported that its Chief Financial Office had "resigned." Immediately following the announcement of the restatement, the Nasdaq Stock Market halted trading in StarMedia stock, pending the receipt of additional information from the Company. StarMedia stock last traded at $0.38 per share, which is 98.5% less that the Class Period high of $25.50, reached on April 11, 2000.
If you bought the securities of StarMedia between April 11, 2000 and November 19, 2001 inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than January 21, 2002. If you are a member of this class, you can join this class action online at http://www.classlawyer.com/sign_up.html. Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller Bowman & Coates, LLP or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents investors throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's Website at www.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP Investor Relations Department: Jackie Addison, Sue Null or Shelly Nicholson P.O. Box 25438 Little Rock, AR 72221-5438 Toll Free: 1-888-551-9944 E-mail: info@classlawyer.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.