FOX & KILSHEIMER LLP ANNOUNCES CLASS ACTION SUIT AGAINST SCB
COMPUTER TECHNOLOGY, INC. AND CERTAIN OF ITS OFFICERS
NEW YORK -- /Counsel for Class Plaintiff, Kaplan Fox & Kilsheimer LLP today issued the following:
A class action has been commenced
in the United States District Court for the Western District of Tennessee on behalf of all persons who purchased or otherwise acquired the common stock of SCB Computer Technology, Inc. (NASDAQ: SCBI; "SCB" or the
"Company") between June 15, 1998 – April 14, 2000, inclusive (the "Class Period").
The lawsuit alleges that throughout the Class Period, defendants violated the federal securities
laws by participating in a scheme to materially misstate the Company's revenues and earnings. It is further alleged that as a result of accounting irregularities the price of SCB stock traded at artificially inflated
levels during the Class Period. Defendants' fraudulent scheme came to an end on April 14, 2000, when the Company revealed that the Audit Committee of its Board of Directors is conducting an independent investigation
into allegations of potential accounting irregularities affecting SCB's financial statements. The Company further revealed that as a result of the allegations and investigation proceedings to date, Ernst &
Young LLP resigned as SCB's independent auditor effective as of April 10, 2000, and that SCB anticipates that it will restate its audited financial statements for fiscal 1998 and 1999 and its unaudited financial
statements for the first three quarters of fiscal 2000. In response to these revelations, Nasdaq halted trading in SCB securities on April 14, 2000. As of today, trading has not yet resumed.
Plaintiff seeks to recover damages on behalf of all persons, who purchased or otherwise acquired SCB Technology, Inc. common stock during the Class Period. Plaintiff is represented by the law firm of Kaplan Fox & Kilsheimer LLP, which has many years of experience in prosecuting investor class actions and extensive experience in actions involving financial reporting and management fraud. For more information about
Kaplan Fox & Kilsheimer LLP, you may visit our website at www.KaplanFox.com.
If you are a member of the Class described above, you may, no later than June 15, 2000, move the Court to serve as lead plaintiff of the Class. In order 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 case or your rights or interests, please contact:
Frederic S. Fox, Esq.
Joel B. Strauss, Esq.
Christine M. Comas, Esq.
Hae Sung Nam, Esq.
Kaplan Fox & Kilsheimer LLP
Fax: (212) 687-7714
E-mail address: mail@KaplanFox.com
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