LOS ANGELES, Aug. 2, 2004 (PRIMEZONE) -- A class action lawsuit was filed in the United States District Court for the Northern District of California on behalf of purchasers (the "Class") of Veritas Software Corporation, Inc.'s (Nasdaq:VRTS) securities ("Veritas" or the "Company") between April 21, 2004 and July 6, 2004, inclusive (the "Class Period"). Veritas is traded on the Nasdaq under the ticker symbol VRTS.
Defendants include Veritas, Edwin G. Gillis and Gary L. Bloom. The Complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10-b(5).
The Complaint alleges that during the Class Period, defendants issued materially false statements concerning Veritas' financial condition. Specifically, although the Company was involved in negotiations for significant contracts, defendants knew or recklessly disregarded the fact that those negotiations had not advanced enough to reasonably conclude they would close. Nevertheless, defendants caused the Company to confirm expectations that its revenue for second quarter 2004 would be $490 to $505 million and earnings per share for the quarter would be $0.21 to $0.23.
On July 6, 2004, just three weeks after defendants confirmed their second quarter 2004 expectations, defendants stunned the market by announcing that the Company's second quarter 2004 revenues would actually be "in the range of $475 million to $485 million" and that its GAAP earnings per share would, in fact, "be in the range of $0.17 to $0.19." As a result of this news, the Company's share price plunged from $26.55 to $17.00, or 36% in heavy trading volume.
Plaintiff seeks to recover damages on behalf of the Class and is represented by the Braun Law Group whose attorneys have significant experience and expertise in prosecuting class actions and have played lead roles in major cases resulting in the recovery of millions of dollars to investors.
If you are a member of the class described above, you may, no later than September 7, 2004, move the Court to serve as lead plaintiff, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. 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 the 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 the Braun Law Group, or other counsel of your choice, to serve as your counsel in this action.
If you wish to discuss this action, or have any questions concerning this notice, or your rights with respect to this action, please contact the following:
Michael D. Braun, Esq. Marc L. Godino, Esq. Braun Law Group, P.C. Telephone: 310-442-7755 Toll-free: 888-658-7100 Email: info@braunlawgroup.com