MURRAY, FRANK & SAILER LLP ANNOUNCES THE FILING OF A SHAREHOLDER CLASS ACTION AGAINST GMH COMMUNITIES TRUST. - GCT
New York, NY April 21, 2006 - Murray, Frank & Sailer LLP has filed a class action lawsuit in the United States District Court for the Eastern District of Pennsylvania on behalf of securities purchasers of GMH Communities Trust (NYSE: GCT) ("GMH" or the "Company") between October 28, 2004 through March 31, 2006, inclusive (the "Class Period"). The Complaint charges GMH, Gary M. Holloway, Sr. and Bradley W. Harris with violations of the Securities Exchange Act of 1934.
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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. 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. On March 31, 2006, the Company announced the continued delay in filing its 2005 annual report and that it expected to restate its prior previously reported financial results due to improper capitalization of expenses and the improper timing of recognition of revenue and expenses. Since the initial disclosure of the audit committee investigation, the Company has lost almost $224 million in market capitalization, closing at $11.21 on April 3, 2006 following the March 31, 2006 disclosure.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired GMH securities on any world exchange between October 28, 2004 through March 31, 2006 and sustained damages, you may, no later than June 5, 2006, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Eric J. Belfi or Bradley P. Dyer of Murray, Frank & Sailer LLP.
Murray, Frank & Sailer LLP
Eric J. Belfi
Bradley P. Dyer
Fax: (212) 682-1892
Email: [email protected]