BALA CYNWYD, Pa., April 23, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
A securities class action lawsuit pending in the U.S. District Court for the Central District of California claims that L90, Inc. (Nasdaq:LNTY) ("L90" or the "Company") misled shareholders about its business and financial condition.
Plaintiff seeks damages for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 on behalf of all investors who bought L90, Inc. securities between July 26, 2001 and March 12, 2002 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of L90, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our Website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint alleges that as part of their effort to boost the price of L90, Inc. stock, defendants misrepresented L90's true prospects in an effort to conceal L90's improper acts until they were able to conceal their fraud by selling the Company to a third party prior to filing the Company's 10-K (due March 31, 2002). In order to overstate revenues and assets in its second and third quarters of 2001, L90 violated Generally Accepted Accounting Principles and SEC rules by engaging in improper "round trip" transactions with HomeStore.com and its customers. These transactions had the effect of dramatically overstating revenues and assets.
On February 4, 2002, L90 issued a press release entitled, "L90 Reports Regulatory Inquiries." The press release stated in part: "L90, Inc., an online media and direct marketing company, today announced that the Company has received notice from the Securities and Exchange Commission that the Commission is conducting an investigation into the Company. In connection with this investigation, the Commission has issued the Company and one of its directors subpoenas requesting documents related primarily to the Company's financial records." On this news the Company's shares plummeted by more than 50% the following trading day and continued to plummet further in the weeks that followed and defendants revealed further incriminating facts.
If you purchased L90, Inc. securities between July 26, 2001 and March 12, 2002, you may be a member of the class and have until May 20, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our Website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca