NEW ORLEANS, May 24, 2006 (PRIMEZONE) -- Kahn Gauthier Swick, LLC ("KGS") announces that shareholders have only until July 10, 2006, to move the Court to serve as lead plaintiff in the securities class action lawsuit commenced in the U.S. District Court for the Southern District of New York, on behalf of shareholders who purchased, exchanged or otherwise acquired the common stock of Escala Group, Inc. (Nasdaq:ESCL) between September 23, 2003 and May 8, 2006.
Institutional investors are strongly encouraged to move for lead plaintiff status.
As investors have now learned, on or about May 9, 2006, Spanish police arrested four people and had raided the offices of Escala's majority shareholder, Afinsa. In reaction to the news regarding Afinsa and Escala's business operations, shares of Escala fell dramatically, falling from $32.00 per share to $12.23 per share on heavy volume. Thereafter, on May 10, 2006, shares of the Company continued to plummet -- falling an additional 47% to close at $6.55 per share. On May 11, 2006, Spanish authorities charged 11 people for their involvement in the pyramid scheme, including 5 Afinsa executives. On this news, shares of Escala dropped an additional $2.21 per share, or 33.74%, to close at $4.34 per share, on heavy trading volume.
If you purchased shares of Escala between September 23, 2003 and May 8, 2006, and wish to discuss your legal rights, you may e-mail or call KGS, without obligation or cost to you. You may contact Lewis Kahn of KGS toll free (866) 467-1400, ext. 106, or by email at lewis.kahn@kglg.com. Further information is available at www.kglg.com/case/case.asp?lngCaseId=4800.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca