<<<
Chronological Index
>>> <<<
Thread Index
>>>
[ga] VRSN : Trust assured...
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
--
This message was passed to you via the ga@dnso.org list.
Send mail to majordomo@dnso.org to unsubscribe
("unsubscribe ga" in the body of the message).
Archives at http://www.dnso.org/archives.html
<<<
Chronological Index
>>> <<<
Thread Index
>>>
|