PHILADELPHIA, Jan. 17, 2001 (PRIMEZONE) -- Counsel for Class Plaintiff, Barrack, Rodos & Bacine, today issued the following:
A class action was commenced in the United States District Court for the District of Colorado on behalf of all persons who purchased the securities of New Era of Networks, Inc. (Nasdaq:NEON) ("NEON" or the "Company") between October 18, 2000 and January 5, 2001, inclusive (the "Class Period").
The complaint charges that, throughout the Class Period, defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations that artificially inflated the price of NEON common stock. Specifically, the complaint charges that during the Class Period defendants misrepresented that the Company had achieved record results for the third quarter 2000. The complaint alleges that defendants failed to disclose that nearly 20% of the "record" revenues was comprised of non-cash receipts of equity in a number of corporate customers of the Company in exchange for the Company's products.
The complaint also charges that after the character of the Company's revenues was revealed, the Company sought to assure the investment community that it remained comfortable with earnings projections when it knew that they were not achievable. The dissemination of this materially misleading information caused NEON's common stock to be artificially inflated throughout the Class Period. Defendants were motivated to inflate the Company's stock price in order to sell tens of thousands of their own shares to unsuspecting investors.
The plaintiff seeks to recover damages on behalf of all purchasers of NEON securities during the Class Period. He is represented by the law firm of Barrack, Rodos & Bacine, which has extensive experience in prosecuting investor class actions involving financial fraud. Barrack, Rodos & Bacine has prosecuted securities, antitrust and consumer class actions for over 20 years. The firm has offices in Philadelphia, San Diego, New York, Boston and New Jersey and has been designated lead counsel by federal and state courts across the country in large, complex securities class actions, including those against Cendant Corp. (the largest securities class action in United States history); McKesson HBOC, Inc.; Informix Corporation; Sunbeam Corporation; and hundreds of others. For more information about Barrack, Rodos & Bacine, visit the company's Website at www.barrack.com.
If you are a member of the Class described above, you may, no later than March 5, 2001, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this case or your rights or interests, please contact Maxine S. Goldman, Shareholder Relations Manager, at Barrack, Rodos & Bacine, 3300 Two Commerce Square, 2001 Market Street, Philadelphia, PA 19103, at 800-417-7305 or 215-963-0600, fax number 888-417-7306 or 215-963-0838 or by e-mail at msgoldman@barrack.com.
More information on this and other class action lawsuits can be found at www.primezone.com/ca