LOS ANGELES, Nov. 23, 2004 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the Central District of California on behalf of a class (the "Class") consisting all persons or entities who purchased or otherwise acquired securities of Autobytel, Inc. ("Autobytel" or the "Company") (Nasdaq:ABTLE) between July 24, 2003 and October 21, 2004, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Autobytel and certain of the Company's executive officers with violations of federal securities laws. Plaintiff claims defendants' omissions and material misrepresentations concerning Autobytel's operations and performance during the Class Period artificially inflated the Company's stock price, inflicting damages on investors. Autobytel is an automotive marketing services company that helps dealers and manufacturers through its marketing, advertising and customer relationship management tools and programs, primarily through the Internet. The Complaint alleges defendants knew or recklessly disregarded that their statements were materially false and misleading when made because: (a) the Company inappropriately recorded revenue/income associated with its dealer sales credits; (b) as a result of this, the Company's financial results were materially inflated; (c) the Company's financial results were in violation of GAAP; (d) the Company lacked adequate internal controls to issue earnings or projection reports; (e) the Company was experiencing weaker than claimed CRM revenues and zero growth in its dealer network size; and (f) as a result of the above, Autobytel's financial results were materially inflated at all relevant times.
On October 21, 2004, the Company revealed its third quarter 2004 financial results would be rescheduled because the Audit Committee and Board of Directors of the Company were directing an internal review of the accounting treatment of certain credits that were recognized as revenue during the preceding quarters. These revelations shocked the market, causing Autobytel's share price to plummet the next day from the previous day's close of $8.81, to close on October 22, 2004, at $6.88, a one-day drop of nearly twenty two percent (22%) as a result of this news.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than December 28, 2004, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Lionel Z. Glancy, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca