NEW YORK, Dec. 9, 2004 (PRIMEZONE) -- Goodkind Labaton Rudoff & Sucharow LLP filed a class action lawsuit on December 9, 2004 in the United States District Court for the Northern District of California, on behalf of persons who purchased or otherwise acquired publicly traded securities of Supportsoft, Inc. ("Supportsoft" or the "Company") (Nasdaq:SPRT) between January 20, 2004 and October 1, 2004, inclusive, (the "Class Period"). The lawsuit was filed against Supportsoft and Radha R. Basu and Brian M. Beattie ("Defendants").
If you are a member of this class you can view a copy of the complaint and join this class action online at http://www.glrs.com/get/?case=Supportsoft.
The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that Defendants issued a series of false and misleading statements to the market during the Class Period. These statements were false and misleading because the Company failed to disclose that its business model was in fact not materially differentiated from other enterprise software companies, that its customers were implementing additional hurdles to contract approvals and that it was experiencing execution difficulties.
On October 4, 2004, the Company announced its preliminary financial results for the third quarter 2004, ended September 30, 2004. The Company announced that it expected total revenues for the third quarter 2004 to be in the range of $11.9 million to $12.3 million as compared to $13.5 million for the same period the prior year. The Company claimed that a "tightness in IT spending" and "more complex approval processes" was the reason for the significant miss. On this news, the Company's share price dropped from $9.62 per share to $6.21 per share, representing a drop of 35.4% on extremely heavy trading volume.
Plaintiffs are represented by the law firm of Goodkind Labaton Rudoff & Sucharow LLP. Goodkind Labaton is one of the country's premier national law firms that represent individual and institutional investors in class action, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts. Goodkind Labaton was recently ranked fourth in total recoveries in 2003 among the top 50 plaintiffs' law firms by Institutional Shareholder Services (ISS), the world's leading provider of proxy and corporate governance services. Notably, Goodkind Labaton recovered over half a billion dollars for its clients last year.
If you bought Supportsoft securities between January 20, 2004 and October 1, 2004, inclusive, you may qualify to serve as Lead Plaintiff. Lead Plaintiff papers must be filed with the court no later than sixty days from today. If you would like to consider serving as lead plaintiff or have any questions about the lawsuit, please contact one of our representatives or Christopher Keller, Esq. at 800-321-0476.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca