Milberg Weiss Announces Class Action Suit Against SupportSoft Inc

The law firm of Milberg Weiss Bershad & Schulman LLP announces that a class action lawsuit was filed on January 5, 2005 on behalf of purchasers of the securities of SupportSoft, Inc. ("SupportSoft" or the "Company") (NASDAQ:SPRT) between January 20, 2004 and October 1, 2004, inclusive (the "Class Period") seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). A copy of the complaint filed in this action is available from the Court, or can be viewed on Milberg Weiss's website at: http://www.milbergweiss.com


The action is pending in the United States District Court for the Northern District of California against defendants SupportSoft, Radha R.Basu (Chairman and CEO) and Brian M. Beattie (CFO).

The complaint alleges that SupportSoft was a provider of support and service management software (referred to as real-time service management software) designed to accelerate and automate enterprise technical support, customer service and end-point management. The complaint further alleges that, throughout the Class Period, defendants claimed that SupportSoft was among an elite group of companies able to deliver in difficult economic times, touted the Company's "crisp execution," and, each quarter, increased 2004 revenue and earnings guidance, such that by the third quarter the Company was guiding analysts and investors to believe that revenues and earnings per share would be in the range of $65 million to $69 million and $0.34 to $0.37, respectively. These statements were materially false and misleading because, among other things, the Company was not executing "crisply" but rather was unable to meet customer specifications, and there was no reasonable basis for defendant's revenue and earnings projections when made. The truth emerged before the open of trading on October 4, 2004. On that date, defendants reported preliminary financial results for the third quarter ended September 30, 2004, announced a third-quarter loss of $0.01 to $0.04 per share, and announced that revenue had declined to as low as $11.9 million from $13.5 million. It was the largest drop since the Company went public in 2000. On this news, the price of SupportSoft shares fell 38.8%, from a closing price of $9.62 on October 1, 2004, the last day before the earnings announcement, to a low of $5.89 on October 4, 2004. The Company subsequently lowered its 2004 revenue and earnings per share guidance to $59 million to $59.7 million and $0.20 to $0.22, respectively. During the Class Period, when SupportSoft shares were trading at artificially inflated prices, the defendants sold 350,000 of their personally held shares for proceeds of $3,568,000.

If you bought the securities of SupportSoft between January 20, 2004 and October 1, 2004, and sustained damages, you may, no later than February 7, 2005, request that the Court appoint you as lead plaintiff. 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 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 Milberg Weiss Bershad & Schulman LLP, or other counsel of your choice, to serve as your counsel in this action.

Milberg Weiss Bershad & Schulman LLP (http://www.milbergweiss.com) is a firm with over 100 lawyers with offices in New York City, Los Angeles, Boca Raton, Delaware, Seattle and Washington, D.C. and is active in major litigations pending in federal and state courts throughout the United States. Milberg Weiss has taken a leading role in many important actions on behalf of defrauded investors, consumers, and others for nearly 40 years. Please contact the Milberg Weiss website for more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following attorneys:

Steven G. Schulman
Peter E. Seidman
Andrei V. Rado
One Pennsylvania Plaza, 49th fl.
New York, NY, 10119-0165
Phone number: (800) 320-5081
Email: sfeerick@milbergweiss.com
Website: http://www.milbergweiss.com