| Company: | Escala Group, Inc. |
| Ticker Symbol: | NASD: ESCL |
| Class Period: | September 5, 2003 to May 8, 2006 |
| Date Filed: | May-10-06 |
| Lead Plaintiff Deadline: | Jul-10-06 |
| Court: | Southern District, NY |
| Allegations: |
A lawsuit has been filed in the United States District Court for the Southern District of New York, on behalf of persons who purchased or otherwise acquired publicly traded securities of Escala Group, Inc. ("Escala" or the "Company") (NASDAQ:ESCL) between September 5, 2003 and May 8, 2006, inclusive, (the "Class Period"). The lawsuit was filed against Escala and certain officers and directors ("Defendants").
The complaint alleges that Defendants violated the federal securities laws. In particular, the complaint alleges that Defendants made misstatements and omitted certain information concerning the true nature of Escala's business dealings with its majority shareholder, Afinsa Bienes Tangibles SA ("Afinsa"), as well as its sales activities.
On May 9, 2006, it was widely reported in the press that Spanish police had arrested four people and had raided the offices of Afinsa. The raid was part of a fraud probe over an alleged pyramid-type scheme. The raid followed the publication of an article in Barron's on May 23, 2005, entitled "Sticky Situation," which detailed potential fraudulent practices at Afinsa. In reaction to the news regarding Afinsa and Escala's business operations, shares of Escala dropped dramatically, falling from $32.00 per share to $12.23 per share on heavy volume.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The complaint alleges that Defendants violated the federal securities laws. In particular, the complaint alleges that Defendants made misstatements and omitted certain information concerning the true nature of Escala's business dealings with its majority shareholder, Afinsa Bienes Tangibles SA ("Afinsa"), as well as its sales activities.
On May 9, 2006, it was widely reported in the press that Spanish police had arrested four people and had raided the offices of Afinsa. The raid was part of a fraud probe over an alleged pyramid-type scheme. The raid followed the publication of an article in Barron's on May 23, 2005, entitled "Sticky Situation," which detailed potential fraudulent practices at Afinsa. In reaction to the news regarding Afinsa and Escala's business operations, shares of Escala dropped dramatically, falling from $32.00 per share to $12.23 per share on heavy volume.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
