NEW YORK, March 10, 2005 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit on behalf of shareholders who purchased or otherwise acquired the securities of Citadel Security Software, Inc. ("Citadel" or the "Company") (Nasdaq:CDSS) between February 12, 2004 through December 16, 2004, inclusive (the "Class Period").
The complaint alleges Citadel, Steven B. Solomon, and Richard Connelly violated the Securities Exchange Act of 1934. Citadel is a computer security and privacy software company. According to the complaint, the Company misrepresented and failed to disclose material adverse facts known to defendants or recklessly disregarded by them: these facts include, (1) slowing customer demand in the Company's commercial business; (2) failure of potential contracts to materialize because of poor execution by the Company's management; (3) lagging Company growth as a result of the above-mentioned facts; and (4) that defendants' statements regarding the Company lacked any reasonable basis when made. The complaint further alleges that during the Class Period, defendants sold 754,500 shares for more than $3 million.
On December 17, 2004, Citadel updated its financials for its year-ended December 31, 2004. The Company stated that it expected revenue for the full year 2004 to be between $15.2 million and $16.0 million, compared to previous guidance of full-year revenue of $18.5 million to $21 million. As a result of the revision, the Company would not meet its previously released net income guidance for the second half of 2004. The Company expects approximately $4.9 million of deferred revenues for 2004, most of which will be earned in 2005. On this announcement, shares of Citadel fell $1.80 per share, or 41.96%, to close at $2.49 per share on abnormally high volume.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired Citadel securities on any world exchange between February 12, 2004 through December 16, 2004, and sustained damages, you may, no later than March 15, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca