Goodkind Labaton Rudoff & Sucharow LLP Announces Class Action Lawsuit Against Surebeam Corporation

Goodkind Labaton Rudoff & Sucharow LLP Announces Class Action Lawsuit Against Surebeam Corporation

Business Editors/Legal Writers

NEW YORK–(BUSINESS WIRE)–Sept. 5, 2003

Goodkind Labaton Rudoff & Sucharow LLP (“Goodkind Labaton”) filed a class action lawsuit on September 4, 2003 in the United States District Court for the Southern District of California, on behalf of persons who purchased or otherwise acquired publicly traded securities of Surebeam Corporation. (“Surebeam ” or the “Company”) (NASDAQ:SUREE) between March 16, 2001 and August 27, 2003, inclusive, (the “Class Period”). The lawsuit was filed against Surebeam and certain officers of the Company.

If you are a member of this class and wish to view a copy of the complaint and join this class action as a lead plaintiff, please e-mail us at investorreleations@glrslaw.com and request a copy of the complaint and a plaintiff certification. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, throughout the Class Period by issuing false and misleading statements concerning the Company’s business. Specifically, the complaint alleges that Surebeam inappropriately recorded transactions included in its 2000-2001 reported financial results, by inappropriately utilizing the percentage of completion method of accounting for its contract with tech Ion, such that its financial statements were materially misleading and were presented in violation of applicable accounting principles.

On July 30 and August 12, 2003, Surebeam issued press releases stating that the Company was delaying the release of its second quarter earnings. On August 21, 2003, Surebeam issued a press release stating that Deloitte & Touche, LLP, Surebeam’s independent auditor for 2003, had raised issues involving “certain aspects of Surebeam’s revenue recognition policies and certain contracts entered into in 2000 and affecting subsequent periods.” Surebeam’s stock dropped to $1.55 per share as a result of this news.

Plaintiffs are represented by the law firm of Goodkind Labaton of New York, New York and Ft. Lauderdale, Florida. Goodkind Labaton is a pioneer in the field of investor protection, with over thirty years experience litigating securities class actions in courts throughout the country. Goodkind Labaton has over 50 attorneys in two offices and maintains an in-house staff of finance and accounting specialists. Goodkind Labaton also has extensive trial experience and, most recently, concluded a class action trial resulting in a landmark $185 million verdict for the plaintiff class.

If you bought Surebeam securities between March 16, 2001 and August 27, 2003, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (800) 321-0476 to speak with an advisor. If you purchased significant amounts of Surebeam securities during this period you may wish to consider making an application to serve as Lead Plaintiff. Lead Plaintiff papers must be filed with the court no later than October 27, 2003. If you would like to consider serving as lead plaintiff or have any questions about the lawsuit, please contact one of our representatives at investorrelations@glrslaw.com or Henry Young Esq. at 800-321-0476.

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