Gutride Safier LLP Announces the Filing of a Securities Fraud Class Action Against Whitney Information Network
February 22 2007 - 11:00AM
PR Newswire (US)
SAN FRANCISCO, Feb. 22 /PRNewswire/ -- Gutride Safier LLP
(http://www.gutridesafier.com/) announces that a class action
lawsuit has been commenced in the United States District Court for
the Middle District of Florida against Whitney Information Network
("Whitney" or the "Company") (OTC:RUSS) (BULLETIN BOARD: RUSS) The
lawsuit claims that Whitney, its Chief Executive Officer Russell
Whitney and its former Chief Operating Officer, Nicholas S. Maturo,
violated Section 10(b) of the Securities Exchange Act of 1934 by
issuing false and misleading statements to the investing public.
The lawsuit alleges that defendants issued a series of false and
misleading statements, emphasizing the success of its marketing
programs and its acquisitions of related companies. Capitalizing on
the rapid increase in the Company's stock price resulting from
these positive announcements, defendants completed a private
placement of Whitney stock in December 2005, in which defendant
Whitney sold 1.25 million of his own holdings for proceeds of over
$5.6 million. Between November 21, 2006 and December 15, 2006, the
truth concerning the Company and its fraudulent business practices
began to surface. On November 21, 2006, defendants revealed that
the Securities and Exchange Commission had begun an investigation
to determine whether the Company violated any securities laws in
connection with: (a) the efficacy or trading success of the
Company's stock market education programs; and (b) the Company's
acquisition of certain other companies. Then, on December 15, 2006,
it was revealed that the United States Attorney for the Eastern
District of Virginia had launched a grand jury investigation into
the marketing activities of the Company, stretching back to 2002. A
few days later, it was announced that defendant Maturo as well as
Whitney's Vice President of Sales had "departed" from the Company.
In response to the news, Whitney stock plunged from $8.20 per share
to less than $4 per share on December 18, 2006 on unusually heavy
trading volume. If you purchased stock (or bought call or sold put
options) in Whitney between November 18, 2003 and December 15, 2006
("Class Period"), you may be a member of the proposed class, and
you have until February 27, 2007 to move the Court to become the
lead plaintiff. Lead plaintiffs must meet certain legal
requirements. If you wish to discuss the action or have any
questions concerning this announcement or your rights or interests
with respect to these matters, please contact Michael Reese of
Gutride Safier LLP at 212-579-4625 or . Please provide your name,
email address and telephone number. For more information about
Gutride Safier LLP and its attorneys who are experienced in
prosecuting complex securities and consumer class actions please
visit http://www.gutridesafier.com/ DATASOURCE: Gutride Safier LLP
CONTACT: Michael Reese, Esq. of Gutride Safier LLP, +1-212-579-4625
Web site: http://www.gutridesafier.com/
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