NEW YORK, Sept. 3, 2002 (PRIMEZONE) -- The law firm of Abbey Gardy, LLP has filed a class action against The Interpublic Group of Companies, Inc. ("IPG" or the "Company") (NYSE:IPG), and certain of its officers and directors in the United States District Court of Florida. on behalf of all persons or entities who purchased IPG securities during the period from October 28, 1997 to August 13, 2002, inclusive (the "Class Period").
The Complaint alleges that defendants 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 to the market during the Class Period, thereby artificially inflating the price of IPG securities. The complaint alleges that throughout the Class Period the Company issued a series of materially false and misleading statements regarding the IPG's earnings and financial performance. The complaint alleges, among other things, that these statements were materially false and misleading because the Company engaged in improper accounting practices which had the effect of materially overstating its reported earnings.
On August 5, 2002, IPG announce that it would be rescheduling the release of it second quarter 2002 earnings "to accommodate the Audit Committee of its Board of Directors." In response to defendants' announcement shares of IPG dropped $4.69 per share, or 23.8%, to close at $14.99 per share. On August 13, 2002, the Company announced, among other things, that it had identified $68.5 million of charges, principally in Europe, which had not been properly expensed and which will result in the restatement of the Company's previously issued financial statements going back to 1997.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired IPG securities during the Class Period. If you purchased or otherwise acquired IPG securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased IPG securities during the Class Period, you may, no later than October 14 2002, request that the Court appoint you as lead plaintiff.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The law sets forth-specific criteria that a lead plaintiff must meet in order to adequately represent the interests of the class. 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 plaintiffs." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
Abbey Gardy, LLP has been retained as one of the law firms to represent the Class. The attorneys at Abbey Gardy, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact Nancy Kaboolian, Esq. of Abbey Gardy, LLP at (800) 889-3701 or (212) 889-3700 or e-mail nkaboolian@abbeygardy.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca