RADNOR, Pa., Feb. 17 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Eastern District of Michigan on behalf of all securities purchasers of ProQuest Company ("ProQuest" or the "Company") between January 9, 2003 and February 8, 2006 inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice, your rights, or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
The complaint charges ProQuest, Alan W. Aldworth, and Kevin G. Gregory with violations of the Securities Exchange Act of 1934. ProQuest publishes solutions for the education, automotive, and power equipment markets. During the Class Period, defendants embarked on a scheme to inflate the Company's stock price by emphasizing the Company's consistent earnings growth and strong financial results. The accounting fraud raised the Company's stock price from a Class Period low of $14 to a Class Period high of $37. This allowed defendants to complete an acquisition of Voyager Expanded Learning ("Voyager") for $340 million in cash and approximately $21 million in stock.
More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the defendants materially manipulated the Company's financial results from at least 1999 to 2005 by understating its defined income and accrued royalty accounts and by overstating its prepaid royalty account; (2) that as a result of the foregoing, the Company's revenue and income figures were materially overstated during the Class Period; (3) that the Company's financial results were in violation of Generally Accepted Accounting Principles ("GAAP"); and (4) that the Company lacked an adequate system of internal controls and as such, defendants financial projections lacked a reasonable basis when made.
On February 8, 2006, ProQuest shocked the market when it announced that its "previously issued financial statements for fiscal years 1999 through 2004, quarterly periods in 2005, and the company's guidance for fiscal 2005, should no longer be relied upon." On this news, shares of ProQuest fell $5.22 per share, or 17.75 percent, to close, on February 9, 2006, at $24.19 per share.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/.
If you are a member of the class described above, you may, not later than April 11, 2006, move the Court to serve as lead plaintiff of the class, if you so choose. 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. You may retain Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action.
CONTACT: Schiffrin & Barroway, LLP
Darren J. Check, Esquire
Richard A. Maniskas, Esquire
280 King of Prussia Road
Radnor, PA 19087
1-800-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at
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