FOX & KILSHEIMER LLP FILES
SECURITIES FRAUD CLASS ACTION
AGAINST NICE SYSTEMS, LTD.
NEW YORK – February 27, 2001 – Kaplan Fox & Kilsheimer LLP (www.KaplanFox.com) has filed a Class Action against NICE Systems, Ltd. and two of its officers in the United States
District Court for the District of New Jersey. The suit is brought on behalf of persons who purchased NICE Systems, Ltd. ("NICE Systems") (Nasdaq: NICE) American
Depository Shares (“ADS’s”) between February 16, 2000 and February 7, 2001 inclusive (the "Class Period").
The complaint charges defendants with violations of the Securities
Exchange Act of 1934. The complaint alleges that during the Class Period, defendants issued materially false and misleading financial statements for fiscal year 1999 and
the first three quarters of fiscal 2000. Defendants improperly recognized material amounts of revenue, in violation of Generally Accepted Accounting Principles, on
among other things, consignment “sales.”
The complaint further alleges that defendants "cooked"
NICE Systems' books in order to report revenues, profits and growth rates, which the Company had led the market to believe would be achieved in fiscal 1999 and 2000 and to
inflate the price of NICE Systems’ ADS's, which were used in two acquisitions during the Class Period which were both partially funded with NICE Systems' artificially
Because of defendants' allegedly fraudulent practices, NICE
Systems' ADS's traded at artificially inflated prices throughout the Class Period. On February 8, 2001 when the Company announced that its financial results for
fiscal year 1999 and the first three quarters of fiscal 2000 would require restatement due to the improper recognition of revenue, the price of NICE Systems' ADS's fell
almost 30% in one day to $13.10.
Plaintiff seeks to recover damages on behalf of the Class and is
represented by Kaplan Fox & Kilsheimer LLP. Our firm, with offices in New York, New Jersey and San Francisco, has many years of experience in prosecuting
investor class actions and actions involving financial 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, you may move the court no later
than April 13, 2001, to serve as a lead plaintiff for the Class. In order to serve as a lead plaintiff, you must meet certain legal requirements.
If you have any questions about this Notice, the action, your
rights, or your interests, please e-mail us at mail@KaplanFox.com or contact:
Frederic S. Fox, Esq.
Joel B. Strauss, Esq.
Donald R. Hall, Esq..
Kaplan Fox & Kilsheimer LLP
805 Third Avenue - 22nd Floor
New York, NY 10022
Fax: (212) 687-7714
E-mail address: mail@KaplanFox.com
Back to the Main List
Please Click Here to Join the Class Actions or Request Information