NEW YORK, Sept. 19, 2002 (PRIMEZONE) -- A class action complaint has been filed in the United States District Court for the Southern District of New York, on behalf of all persons or entities who purchased or otherwise acquired securities of The Interpublic Group of Companies ("Interpublic " or the "Company") (NYSE:IPG) between October 28, 1997 and August 13, 2002, both dates inclusive (the "Class Period"). The Interpublic Group of Companies, Inc., John J. Dooner, Jr., Philip H. Greier, Sean F. Orr, Frederick Molz, Eugene P. Beard, Richard P. Sneeder, Jr., David I.C. Weatherseed, and Joseph M. Studley are named as defendants in the complaint.
To discuss this action, this announcement, or your rights or interests, please contact plaintiff's counsel, Eric J. Belfi or Sharon Lee, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com.
The complaint alleges that defendants violated section 10(b) of the Securities Exchange Act of 1934 by issuing a series of materially false and misleading statements and omitting to disclose material adverse information about the Company's operations and prospects during the Class Period. Specifically, the complaint alleges that defendants issued numerous statements and filed quarterly and annual reports with the SEC which described the Company's increasing net income and financial performance. These statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (i) that, throughout the Class Period, the Company was overstating its net income by failing to expense certain charges which should have been expensed; (ii) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (iii) that as a result, the value of the Company's net income and financial results were materially overstated at all relevant times.
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," which will cause the company to restate its previously issued financial statements going back to 1997 and prior. During the Class Period, defendants and other insider sold almost $100 million of Interpublic stock.
Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You can learn more information about Rabin & Peckel LLP at www.rabinlaw.com.
If you purchased Interpublic securities during the Class Period described above, you may, no later than October 14, 2002, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. Contact plaintiffs' counsel Eric J. Belfi or Sharon Lee of Rabin & Peckel LLP to further discuss this action, this announcement, or your rights or interests.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.