PHILADELPHIA, February 15, 2001 (PRIMEZONE) -- The law firm of Spector, Roseman & Kodroff, P.C. announces that a class action lawsuit has been commenced in the United States District Court for the Western District of Oklahoma against defendants Pre-Paid Legal Services, Inc. ("Pre-Paid" or the "Company") (NYSE:PPD), Randy Harp, Chief Operating Officer, Harland C. Stonecipher, Chief Executive Officer and Chairman of the Board, Steve Williamson, Chief Financial Officer, and Kathleen S. Pinson, Vice President, Chief Accounting Officer and Controller, on behalf of purchasers of the stock of Pre-Paid between April 19, 1999 and January 16, 2001 (the "Class Period").
The action seeks damages for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Plaintiff alleges that Pre-Paid Legal misled the investing public during the Class Period by overstating its financial results. Pre-Paid Legal recorded the commissions it paid to its salespeople as assets instead of expenses in its financial statements. The complaint alleges this bookkeeping maneuver served to overstate revenues by at least $78 million and violated the generally accepted accounting principles Pre-Paid Legal claimed to follow. Pre-Paid Legal's shares have lost more than half their value since news of these accounting violations came to light.
If you purchased the stock of Pre-Paid between April 19, 1999 and January 16, 2001, you may, no later than March 23, 2001, move the court to serve as lead plaintiff of the class, if you choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Spector, Roseman & Kodroff, P.C., or other counsel of your choice, to serve as your counsel in this action.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via E-mail at classaction@spectorandroseman.com. For more detailed information about the firm please visit its website at http://www.spectorandroseman.com.
SPECTOR, ROSEMAN & KODROFF, P.C., located in Philadelphia, Pennsylvania and San Diego, California, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca