Re: [ga] VRSN : Trust assured...

[William X Walsh <william@wxsoft.info>]

Old news, posted here two weeks ago.

Friday, May 24, 2002, 12:20:19 AM, Sotiris Sotiropoulos wrote:

> 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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-- 
Best regards,
William X Walsh <william@wxsoft.info>
--
Save Internet Radio!  
CARP will kill Webcasting!
http://www.saveinternetradio.org/

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