Shareholder Class Action Filed Against SupportSoft, Inc.
23 January 2005Zwerling, Schachter & Zwerling, LLP ("Zwerling Schachter") has filed a class action lawsuit in the United States District Court for the Northern District of California on behalf of all persons and entities who purchased the securities of SupportSoft, Inc. ("SupportSoft" or the "Company") (Nasdaq: SPRT) between January 20, 2004 and October 1, 2004, inclusive. The deadline to file a motion seeking to be appointed lead plaintiff is February 7, 2005. If you wish to discuss this action or have any questions concerning your rights and interests with respect to this securities litigation matter, please contact Zwerling Schachter (Shaye J. Fuchs, Esq. or Jayne Nykolyn) at 1-800-721-3900 or by e-mail at sfuchs@zsz.com or jnykolyn@zsz.com. 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, it alleges that the defendants failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them that: (a) SupportSoft's business model was in fact not materially differentiated from other enterprise software companies; (b) SupportSoft's product pipeline was weighted heavily toward perpetual deals; (c) SupportSoft was experiencing sales execution difficulties; (d) SupportSoft was encountering a more challenging software spending environment that required authorization signatures and longer sales cycles; and (e) as a result, the defendants, fiscal 2004 financial projections were lacking in any reasonable basis when made. 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 in the prior year. On this news, SupportSoft's share price fell from $9.62 per share to $6.21 per share, representing a decline of approximately 35%. If you purchased the securities of SupportSoft between January 20, 2004 and October 1, 2004, you may apply to serve as lead plaintiff. The lead plaintiff is responsible for overseeing the prosecution of the action and ensuring that the interests of the class are protected. You may apply to be appointed lead plaintiff through Zwerling Schachter.
Zwerling Schachter concentrates in prosecuting class actions nationwide on behalf of investors. The firm currently plays a leading role in numerous major securities and complex commercial litigations pending in federal and state courts and has offices in New York City, Uniondale, New York, Boca Raton, Florida and Seattle, Washington. The firm has been recognized by courts throughout the country as highly experienced and skilled in complex litigation, particularly with respect to federal securities class action litigation.
Source: PR Newswire
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