The law firm filing the suit alleges misleading statements about financial announcements.The lawfirm of Cauley Geller Bowman Coates & Rudman is filing a class action lawsuit against Acclaim Entertainment on behalf of Acclaim's investors. The complaint alleges that Acclaim issued statements about the company's income and financial performance that were either misleading or false, and that investors suffered as a result.
Interestingly, listed in the information that Acclaim allegedly withheld from investors is information about the lagging sales of Turoc: Evolution (sic), and Aggressive Inline. The suit also says that by developing games like BMX XXX, the company severely limited its ability to get into retail channels that it needed to sell the games. Other issues the suit mentions include the company's inability to track certain important pieces of sales information, and that there was no basis for any optimism in any public statements made by Acclaim.
The crux of the complaint is that when Acclaim issued a statement that it was expecting to report an operating loss for the 4th quarter, shares dropped precipitously, losing almost 30% of their value in a single day. Basically, the suit says that this performance proves that Acclaim was lying about its financial health in earlier reports.
If you are an shareholder in Acclaim and bought shares between January 11th, 2002, and September 19th, 2002, you can go to the Cauley Geller website and file to be included in the complaint.
Topic: Class-Action Lawsuit Filed Against Acclaim (Read 2635 times)
