ATLANTA, Jan. 8 /PRNewswire/ -- Bull Run Corporation (Nasdaq: BULL) today
announced that it has filed a lawsuit in the State Court of Fulton County,
Georgia, against Ernst & Young LLP, claiming negligent misrepresentation.
Ernst & Young audited the financial statements of Universal Sports America,
Inc. ("Universal"), a Dallas-based company, acquired by Bull Run in December
1999. Bull Run claims that it placed significant reliance on Ernst & Young's
audit reports on the audited financial statements of Universal issued prior to
the acquisition, and that those financial statements contained material
errors. The firm Susman Godfrey L.L.P. is representing Bull Run in this
matter.
In April 2001, representatives of Bull Run's wholly owned subsidiary, Host
Communications, Inc., discovered material errors in the accounting for prepaid
expenses and contract receivables included in Universal's pre-acquisition
audited financial statements and in Universal's accounts included in Bull
Run's consolidated financial statements subsequent to the acquisition. The
correction of the accounting errors led to a previously reported restatement
of Bull Run's previously-issued financial statements. Universal has been
merged into Host Communications and all accounting functions for Universal's
operating businesses are now the responsibility of Host Communications' staff.
Bull Run, through Host Communications, provides affinity, multimedia,
promotional and event management services support to universities, athletic
conferences, associations and corporations. Bull Run also has significant
investments in Gray Communications Systems, Inc., an owner and operator of 13
television stations and four newspapers; Rawlings Sporting Goods Company,
Inc., a leading supplier of team sports equipment in North America; and iHigh
Inc., a marketing company focused on high school students.
Forward-Looking Statements
Certain statements in this press release are "forward looking" statements
within the meaning of the Private Securities Litigation Reform Act of 1995.
These statements are not guaranties of future performance and actual results
may differ materially from those forecasted.
SOURCE Bull Run Corporation
 back to top
Related links:
http://www.bullruncorp.com
Company News On-Call:
http://www.prnewswire.com/gh/cnoc/comp/232438.html
CONTACT:
Robert S. Prather, Jr., President & Chief
Executive Officer of Bull Run Corporation, +1-404-266-8333
|
