ST. PAUL, Minn., June 21, 2005 (PRIMEZONE) -- Reinhardt Wendorf & Blanchfield announces that a class action lawsuit was filed in the United States District Court for the District of Minnesota, on behalf of purchasers of Navarre Corporation ("Navarre" or "the Company") (Nasdaq:NAVR) common stock during the period between January 21, 2004 and February 22, 2005, inclusive (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from June 13, 2005. If you wish to discuss this case or have questions concerning this case or your rights or interests, please contact: Garrett D. Blanchfield of Reinhardt Wendorf & Blanchfield at 800-465-1592 or 651-287-2100, via facsimile at 651-287-2103 or via email at g.blanchfield@rwblawfirm.com. For more information about Reinhardt Wendorf & Blanchfield, visit our website at www.rwblawfirm.com.
The complaint charges Navarre and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Navarre engages in the publication and distribution of various home entertainment and multimedia products, including personal computer software, audio and video titles, and interactive games.
The complaint alleges that during the Class Period, defendants made materially false and misleading statements regarding the company's business and financial results. On January 10, 2005, Navarre announced the acquisition of FUNimation for $100 million in cash and between 1.495 million and 1.827 million shares of Navarre stock. After this announcement, Navarre's stock reached its Class Period high of $18.77 per share. Defendants took advantage of the inflation in Navarre's stock during the Class Period, selling 994,362 shares of Navarre stock for proceeds of $13.8 million.
On January 18, 2005, Navarre filed a registration statement with the SEC to raise up to $140 million through the sale of its common stock to fund the acquisition of FUNimation. On January 26, 2005, Navarre reported favorable third quarter fiscal 2005 results, which defendants said reflected "the continuing execution of our strategic plan." Then, on February 22, 2005, the Company suddenly withdrew its Registration Statement initially filed for the purpose of funding its acquisition of FUNimation. According to the complaint, this sudden withdrawal reignited rumors that the Company's accounting was problematic. On this news, the stock dropped to below $7 per share. Later, the Company announced that it would have to postpone the release of its fourth quarter and fiscal year 2005 financial results and that it was reviewing the recognition and classification of certain fiscal 2005 tax items.
Plaintiff seeks to recover damages on behalf of all purchasers of Navarre stock during the Class Period. The plaintiff is represented by Reinhardt Wendorf & Blanchfield, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Reinhardt Wendorf & Blanchfield and its predecessor firm 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.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.