Shareholder Class Action Filed Against GMH Communities Trust by the Law Firm
of Schiffrin & Barroway, LLP
RADNOR, Pa., April 10 -- 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 Pennsylvania on
behalf of all securities purchasers of GMH Communities Trust (NYSE: GCT)
("GMH") or the "Company" from October 28, 2004 through March 10, 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 info@sbclasslaw.com.
The Complaint charges GMH, Gary M. Holloway, Sr. and Bradley W. Harris
with violations of the Securities Exchange Act of 1934. GMH, a housing
company, provides housing to college and university students residing off-
campus and to members of the U.S. military and their families. 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 Company
improperly capitalized certain student housing property-related
expenditures; (2) that the Company improperly timed the recognition of
certain revenues and expenses, which served to understate the Company's
operating expenses; (3) that the Company lacked adequate internal controls;
(4) that the Company's financial results were in violation of Generally
Accepted Accounting Principles ("GAAP"); and (5) that as a consequence of
the foregoing, the Company's financial results were materially inflated at
all relevant times.
On March 13, 2006, GMH announced that it was postponing the release of
its results for the fourth quarter and year ended December 31, 2005. The
delay related to events arising from an investigation initiated by the
Company's Audit Committee following its receipt of a letter from the
Company's Chief Financial Officer alleging, among other things, a "tone at
the top" problem within Company management. On this news, shares of GMH
fell $3.93 per share, or 23 percent, to close on March 13, 2006, at $12.90
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 June 5, 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 info@sbclasslaw.com
SOURCE Schiffrin & Barroway, LLP
Web Site: http://www.sbclasslaw.com
