BOCA RATON, Fla., April 4, 2001 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that it has filed a class action in the United States District Court for the Northern District of California on behalf of all individuals and institutional investors that purchased the common stock of Nuance Communications Inc. ("Nuance" or the "Company") (Nasdaq:NUAN) between January 31, 2001 and March 15, 2001, inclusive (the "Class Period").
The complaint charges that the Company and certain of its officers and directors violated the federal securities laws by providing materially false and misleading information about the Company's financial condition and future growth potential, and as a result of these false and misleading statements the Company's stock traded at artificially inflated prices during the class period. Nuance develops, markets, and supports a voice-recognition software platform that purportedly makes the information and services of enterprises, telecommunications networks, and the Internet accessible from any telephone. The complaint alleges that after exceeding analysts' earnings expectations for its fourth quarter and reporting ``record revenue,'' defendants reaffirmed Nuance's leadership position in the voice-recognition market and the continued revenue growth experienced since the end of the fourth quarter. Thereafter, the Individual Defendants, contrary to their unwavering public support for the Company's prospects and its stock, sold vast quantities of their holdings in Nuance stock.
Just weeks after defendants finished selling their own Nuance stock, they revealed that the Company's revenue growth had in fact ceased, and that revenues for the quarter would be well below those reported for the prior quarter. Commenting on the disappointing news, defendants stated: ``Nuance attributes the revenue shortfall primarily to general economic conditions, which have led customers and customer prospects to postpone capital investment in Nuance products and service offerings based on Nuance products. The company believes its visibility is limited for both the second quarter and full-year results.'' Immediately following defendants' March 15, 2001 disclosures, the price of Nuance stock dropped, falling from its closing price of $17 per share March 15, 2001 to $9.68 per share at the close on March 16, 2001, a drop of more than 40%.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents shareholders from throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you must meet certain requirements and take appropriate action by May 21, 2001. You are encouraged to call or e-mail the Firm or visit the Firm's website at www.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP Sue Null, Charlie Gastineau or Jackie Addison Toll Free: 1-888-551-9944 E-mail: info@classlawyer.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca