Wolf Popper LLP Files Securities Fraud Class Action Against Majesco Entertainment Company
July 27 2005 - 10:26AM
PR Newswire (US)
Wolf Popper LLP Files Securities Fraud Class Action Against Majesco
Entertainment Company NEW YORK, July 27 /PRNewswire/ -- Wolf Popper
LLP has filed a securities fraud lawsuit against Majesco
Entertainment Company ("Majesco") (NasdaqNM: "COOL") and certain of
its officers and directors, on behalf of all persons who purchased
Majesco securities on the open market during the period December 8,
2004 through July 12, 2005. The action was filed in the United
States District Court, District of New Jersey. The complaint can be
obtained from the Court or viewed on Wolf Popper's website
(http://www.wolfpopper.com/). The complaint alleges that during the
Class Period, defendants caused Majesco to issue numerous press
releases and file quarterly and annual report with the SEC, touting
that the Company's sales for year 2005 expected to bring in
$175-185 million in revenue and operating income of $16-18 million,
and repeatedly discussing the introduction of new products such as
popular frontline video games and wireless plug and play gadgets.
However, unbeknownst to the market, Majesco was facing weaker than
expected sales across all product lines, high retail inventory
levels, a steep decline in demand for its products, and a
write-down of receivables as a result of a financially troubled
customer. On July 12, 2005, Majesco stunned the market when it
finally revealed its true financial condition, informing investors
that it had to lower its previous guidance on fiscal 2005 earnings
by more than 200%, from an operating income of $16-18 million to an
operating loss of $16-19 million. In immediate reaction to the July
12, 2005 announcement, Majesco's common stock plummeted 48% to
$3.56, on a trading volume of 19,070,308, from its closing price of
$6.89 on July 12, 2005, and a trading volume of 901,051. Wolf
Popper LLP has extensive experience representing shareholders in
class actions and has successfully recovered billions of dollars
for defrauded shareholders. Class members who desire to be
appointed a lead plaintiff in this action must file a motion with
the Court no later than September 16, 2005. Class members who are
interested in serving as a lead plaintiff in this action, or other
persons who have questions or information regarding the prosecution
of this action, are urged to call or write: Emily DeMuro, Investor
Relations () or James Kelly- Kowlowitz, Esq. () * Wolf Popper LLP *
845 Third Avenue * New York * NY * 10022 Tel.:212.759.4600 * Toll
Free:877.370.7703 * Fax:212.486.2093 * Toll Free Fax:877.370.7704
Email: Contact: Wolf Popper LLP Emily DeMuro, Investor Relations
212.451.9610 Doc#: 148796 Ver#:1 9730:0294 DATASOURCE: Wolf Popper
LLP CONTACT: Emily DeMuro, Investor Relations, of Wolf Popper LLP,
+1-212-451-9610 Web site: http://www.wolfpopper.com/
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