Class Action Filed Against Quintel Entertainment, Inc. and Others.NEW YORK--(BUSINESS WIRE)--June 30, 1998--Notice is hereby given that a class action lawsuit class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax was filed yesterday in the United States District Court United States District Court In the U.S., any of the 94 trial courts of general jurisdiction in the federal judicial system. Each state, as well as the District of Columbia and the Commonwealth of Puerto Rico, has at least one federal district court. for the Southern District of New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , on behalf of all persons who purchased or otherwise acquired the common stock of Quintel Entertainment, Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on : QTEL) ("Quintel" or the "Company") between July 15, 1997 and October 15, 1997, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 ("Exchange Act"). The complaint charges Quintel and certain officers and directors of the Company during the relevant time period with violations of Sections 10(b) and 20(a) of the Exchange Act, by, among other things, issuing materially false and misleading statements and press releases concerning Quintel's operating results and future outlook. Because of the issuance of a series of false and misleading statements and press releases concerning Quintel's failure to disclose increasing chargebacks on its telephone entertainment services and a reduction of AT&T's business with Quintel, the price of Quintel common stock was artificially inflated during the Class Period. The complaint further alleges that certain insiders sold hundreds of thousands of shares of Quintel common stock to the unsuspecting investing public at inflated prices during the Class Period, realizing over $7 million in proceeds. On October 15, 1998, Quintel issued a press release belatedly disclosing the true facts concerning its operating results and future prospects. Following this announcement, the price of Quintel common stock plummeted to $7.6875 per share and has since declined to trade in the $4.00 per share range. Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Milberg Weiss Founded in 1965 by attorneys Larry Milberg and Melvyn I. Weiss, Milberg Weiss (formerly known as Milberg Weiss & Bershad LLP) is a U.S. plaintiffs' law firm. Based in New York City, it is widely known for representing investors in securities class actions. Bershad Hynes & Lerach LLP LLP - Lower Layer Protocol ("Milberg Weiss"), among others. Milberg Weiss maintains offices in New York City New York City: see New York, city. New York City City (pop., 2000: 8,008,278), southeastern New York, at the mouth of the Hudson River. The largest city in the U.S. , San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. , Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. and San Francisco and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in numerous important actions on behalf of defrauded investors, and is responsible for a number of outstanding recoveries which, in the aggregate, total approximately $2 billion. For more information about Milberg Weiss, please visit our website at www.milberg.com. If you are a member of the class described above, you may, not later than sixty days from May 6, 1998, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Milberg Weiss (Steven G. Schulman or Samuel H. Rudman) at One Pennsylvania Plaza, 49th Floor, New York, New York 10119-0165.
CONTACT: Milberg Weiss Bershad Hynes & Lerach LLP
Steven G. Schulman
Samuel H. Rudman
E-Mail: classact@microweb.com.
1-800-922-0187
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