[ga] VRSN : Trust assured...

[Sotiris Sotiropoulos <sotiris@worldatlarge.org>]

I am of the opinion that Verisign needs be divested of its Internet 
Registry function ASAP. [Anyone want to second such a move?]  WARNING: 
The following is a potentially destabilizing situation.  If at any time 
you feel as if you're going to be sick, please use an airbag.  Well, 
here's the latest on everyone's favourite company:
-------------
from:
http://investor.cnet.com/investor/news/newsitem/0-9900-1028-9949161-0.html?tag=ltnc 
 [mind the wrap]

BALA CYNWYD, Pa., May 23 /PRNewswire/ -- A class action lawsuit has been 
commenced in the United States District Court for the Northern District 
of California on behalf of purchasers of VeriSign Inc. (Nasdaq: VRSN) 
common stock during the period between Jan. 25, 2001 and April 25, 2002 
(the "Class Period"). Any member of the purported class may move the 
Court to serve as lead plaintiff through counsel of their choice, or may 
choose to do nothing and remain an absent class member.

The complaint charges VeriSign and certain of its officers and directors 
with violations of the Securities Exchange Act of 1934. The Company 
provides digital trust services that enable Web site owners, 
enterprises, communications service providers, e-commerce service 
providers and individuals to engage in secure digital commerce and 
communications.

The complaint alleges that during the Class Period, defendants sought to 
artificially increase the Company's revenue and margins and to create 
the perception that its deferred revenue growth was derived organically. 
In fact, approximately 10% of the Company's revenue was derived from 
sales to small companies in which VeriSign had invested and from dubious 
"barter transactions."

VeriSign's revenues and earnings derived from related parties were 
dubious at best. Specifically, whenever a two-way set of transactions 
occurs in which a company acts as both the lender and service provider, 
an investor lacks assurance as to whether the related parties would have 
made similar decisions regarding purchases in the absence of financing 
from that company. Accordingly, despite the Company's claims that such 
transactions were separately negotiated and recorded at terms the 
Company considered to be at arm's length and fair value, the revenue and 
earnings that VeriSign recognized from its relationship with these 
customers was not an accurate measure of the "real" demand for 
VeriSign's products. Equally dubious was the quality of the non-monetary 
portion of revenue recorded from reciprocal agreements.

As part of their effort to boost the price of VeriSign stock, defendants 
misrepresented VeriSign's true prospects in an effort to conceal 
VeriSign's improper acts until they were able to sell at least $26 
million worth of their own VeriSign stock and use VeriSign's shares to 
acquire companies in stock- for-stock transactions. In order to 
overstate revenues and assets, VeriSign violated Generally Accepted 
Accounting Principles and SEC rules by, among other things, engaging in 
improper barter transactions and affiliate sales. These transactions had 
the effect of dramatically overstating the Company's margins and 
financial statements. On the Company's partial disclosures on April 25, 
2002, the Company's shares plummeted by more than 50%.

Plaintiff is represented by The Law Offices of Marc S. Henzel. If you 
bought the securities during the class period, you may, no later than 
July 9, 2002, request that the Court appoint you as lead plaintiff. 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.

If you have any questions concerning this case or your rights or 
interests with respect to these matters, please contact: Marc S. Henzel, 
Esq. of The Law Offices of Marc S. Henzel, 273 Montgomery Ave, Suite 202 
Bala Cynwyd, PA 19004-2808, by telephone at (888) 643-6735 or (610) 
660-8000, by facsimile at (610) 660-8080, by e-mail at 
Mhenzel182@aol.com or visit the firm's website at 
http://members.aol.com/mhenzel182.
-----------------

I am more than just a little uncomfortable with the thought that this 
same sleazeball company is responsible for the COM, NET & ORG Registry 
functions.

Sincerely,

Sotiris Sotiropoulos



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