The Complaint charges that the Company and certain of its officers violated federal securities laws by issuing a series of false and misleading statements to the investing public which materially misstated the Company's financials, thereby artificially inflating the price of SureBeam's stock.
Specifically, the Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing press releases and SEC filings which failed to disclose that the Company's reported earnings and profits were materially overstated because they were in violation of Generally Accepted Accounting Procedures (GAAP).
The Company launched a successful IPO on March 16, 2001, based on a prospectus containing alleged misrepresentations. Throughout the Class Period, defendants continued to disseminate false and misleading statements to the public, thereby keeping the stock trading at artificially high levels. However, on June 10, 2003, SureBeam announced that it was terminating KPMG LLP as its auditor and replacing it with Deloitte & Touche LLP. On August 21, 2003, the Company announced that it was then dismissing Deloitte & Touche due to issues Deloitte had with the Company's revenue recognition policy. As a result, SureBeam twice delayed filing its 10-Q and eventually missed the deadline.
Plaintiff seeks to recover damages on behalf of the Class and is represented by Weiss & Lurie. The firm, with offices in New York and Los Angeles, has extensive experience in complex litigation, particularly securities class actions, and has been appointed lead class counsel in numerous consolidated and multi-district cases.

Update

On October 6, 2003, Judge Miller of the Southern District of California ordered the consolidation of all related cases into In re SureBeam Corporation Securities Litigation, Case No. 03-CV-001721-JM (POR), and appointed Blumenthal & Markham and Lerach Coughlin Stoia & Geller as co-lead counsel. On January 3, 2005, he granted in part and denied in part defendants' motion to dismiss the case. On March 24, 2004, plaintiffs, on behalf of the class, filed a consolidated class action complaint, which defendants moved to dismiss. On January 3, 2005, the court granted in part and denied in part motions to dismiss this complaint. Pursuant to the court’s order, plaintiffs have filed an amended complaint. On April 17, 2006, the Court preliminarily approved a settlement between the parties and certified a class for settlement purposes only. On July 17, 2006, the court ordered a settlement conference for the sole purpose of determining allocation of awarded attorney's fees.
Claim forms are due no later than July 25, 2006. The claims administrator, Gilardi & Co. LLC, will continue to process claim forms received after this date but cannot guarantee they will be honored.
Specific case information or basic information about Gilardi & Co. LLC can be obtained via email at classact@gilardi.com or by calling 415-461-0410 to speak to a customer service representative.