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Finkelstein & Krinsk Charge Hall, Kinion & Associates with Defrauding Shareholders.

SAN DIEGO--(BUSINESS WIRE)--July 2, 1999--

Finkelstein & Krinsk charge in this class action law suit that Hall Kinion & Associates, Inc. (Nasdaq:HAKI) ("Hall Kinion") and certain of its officers and directors, underwriters and venture capitalists of violated federal securities laws by issuing false and misleading statements and failing to disclose material facts concerning the company's operations and prospects.

Specifically, Finkelstein & Krinsk, as detailed in the Complaint, allege that defendants' false and misleading statements about the successful expansion and strong performance of Hall Kinion's IP temporary personnel business, Hall Kinion's competitive advantages, including unrivaled access to potential contractors which were in increasingly short supply, its mature, successful and yet unique business model which matched revenue and expense, the exceptional productivity of its recruiters, and their forecasts of 35 percent-40 percent EPS growth for Hall Kinion, allowed Hall Kinion to go public on August 4, 1997, at $15 and thereafter artificially inflate its stock to a Class Period high of $23.

Hall Kinion, its insiders and controlling shareholders sold 1,666,667 and 848,333 shares, respectively, of their Hall Kinion stock in the August 1997 initial public offering ("IPO"), for $23.2 million and $11.8 million, respectively. The defendant underwriters received $2.6 million of the IPO proceeds.

Then, on June 18, 1998, Hall Kinion shocked the market by revealing that, due to sharply reduced recruiter productivity, substantial difficulties in recruiting sufficient numbers of adequately skilled contractors, serious problems within Hall Kinion's UNIX practice group, and the poor performance of its Orlando office and a major revenue and expense mismatch due to the failure of Hall Kinion's business model to perform properly, Hall Kinion's EPS growth going forward would be much lower than had been forecast. Hall Kinion's stock immediately fell by 43 percent in one day from $13-1/4 to $7-1/2, on volume of 1.7 million shares, and then continued to fall to $6-1/8. As a result of Hall Kinion's false and misleading statements, its common stock was artificially inflated during the period of time between August 5, 1997, and June 18, 1998 (the "Class Period").

Finkelstein & Krinsk, the prominent San Diego law firm specializing in shareholder lawsuits for institutional and other large individual investors, was retained on behalf of Hall Kinion shareholders to recover losses suffered by such investors during the Class Period. The Complaint, filed in the United States District Court for the Northern District of California, particularizes the Defendants' deceptive statements and omitted material facts. This notice is directed to person or entities who purchased or otherwise acquired Hall Kinion stock during the Class Period and who may actively participate in this lawsuit to assure the greatest return of losses.

Plaintiff's counsel, Finkelstein & Krinsk, has extensive experience in prosecuting stockholder litigation and investor class actions and is recognized as a leader in the field of shareholder recovery of stock losses. The law firm has become the resource of choice for large and institutional investors. Such Hall Kinion shareholders may immediately join in this action without any cost or expense of any kind.

For any inquiries or to further discuss the lawsuit contact Jeffrey R. Krinsk, Esq., at Finkelstein & Krinsk, The Koll Center, 501 West Broadway, Suite 1250, San Diego, CA 92101 by calling toll-free 1-877/493-5366, e-mailing: fk@class-action-law.com or faxing: 619/238-5425.
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Publication:Business Wire
Geographic Code:1USA
Date:Jul 2, 1999
Words:552
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