IFIN Investors Financial Services (MM)

RADNOR, Pa., Aug. 15 /PRNewswire/ -- 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 District of Massachusetts on behalf of all securities purchasers of Investors Financial Services Corp. (NASDAQ:IFIN) ("Investors Financial" or the "Company") between October 15, 2003 and July 14, 2005 inclusive (the "Class Period"). 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 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 . The complaint charges Investors Financial, Kevin J. Sheehan, Michael F. Rogers, John N. Spinney Jr., Robert D. Mancuso, and Edmund J. Maroney with violations of the Securities Exchange Act of 1934. 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's improper accounting practices resulted in a $6.2 million reduction in net interest income; (2) that the Company lacked adequate internal controls; (3) that the Company's financial results were in violation of Generally Accepted Accounting Principles ("GAAP"); (4) that due to the impact of interest rate yield compression and the flattening of the interest rate curve the Company's 2005 guidance was not achievable; (5) that defendants' use of interest rate swaps to hedge against the negative impact to the balance sheet was ineffective; and (6) that as a consequence of the foregoing, defendants' statements with respect to the Company's growth and progress lacked in all reasonable basis when made. On July 14, 2005, the Company announced that its 2005 and 2006 previously announced earnings guidance was not achievable. On this news, shares of Investors Financial fell $7.47 per share, or 17.99 percent, on July 15, 2005, to close at $34.05 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 October 3, 2005 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, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll-free) or 1-610-667-7706 Or by e-mail at DATASOURCE: Schiffrin & Barroway, LLP CONTACT: Darren J. Check, Esq., or Richard A. Maniskas, Esq., of Schiffrin & Barroway, LLP, +1-888-299-7706, or +1-610-667-7706, or Web site: http://www.sbclasslaw.com/

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