PHILADELPHIA, Nov. 1, 2001 (PRIMEZONE) -- The law firm of Berger & Montague, P.C. (http://www.bergermontague.com) filed a class action suit on behalf of an investor against CareScience, Inc. ("CareScience" or the "company") (Nasdaq:CARE) and its principal officers and directors in the United States District Court for the Eastern District of Pennsylvania on behalf of all persons or entities who purchased CareScience, Inc. securities during the period from June 28, 2000 through and including November 1, 2000, inclusive (the "Class Period").
The complaint alleges that CareScience and its principal officers and directors violated Sections 11,12(a)(2) and 15 of the Securities Act of 1933 and misled investors by misrepresenting and failing to disclose material facts as follows: the prospectus (a) represented that the Company intended to use $20 million of the proceeds of its June, 2000 public offering for product development, and an additional $13 million to expand the Company's sales and marketing efforts; (b) stated that the Company's operating expenses were expected to continue to increase "as we expand our product development and sales and marketing efforts;" and that "[a]s we execute our strategy we expect significant increases in our operating expenses to fund development of current and new product lines;" and (c) touted the Company's Careleader.com and CareScience.com products, stating that the sales of those products were expected to commence in 2001.
In fact, (a) as disclosed at the end of the Class Period, the Company was planning only extremely minimal increases in selling, general and administrative expenses, a rate of increase which would not equal the represented $13 million to be used for the purpose for more than a decade. Indeed the increase in such expenditures was completed with the addition of a mere eight sales and marketing employees; (b) the Company planned only modest increases in research and development, at a rate which similarly would not equal the represented amount to be used for that purpose for more than a decade; and (c) the Company had yet to determine the marketability of its CareScience and CareLeader products, and, as a result, had no reasonable basis for the representation that sales of those products would begin in 2001.
If you purchased CareScience common stock during the period from June 28, 2000 through November 1, 2000 inclusive, you may, no later than December 17, 2001 move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class members(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. If you have sustained substantial losses in CareScience common stock during the Class Period, please contact Berger & Montague, P.C. at investorprotect@bm.net for a more thorough explanation of the Lead Plaintiff selection process.
The law firm of Berger & Montague, P.C. has over 50 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries of several billion dollars to investors. The firm is currently representing investors as lead counsel in actions against Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office Solutions, Inc. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example:
"Class counsel did a remarkable job in representing the class interests." In Re: IKON Offices Solutions Securities Litigation. Civil Action No. 98-4286(E.D.Pa.) (partial settlement for $111 million approved May, 2000).
"...[Y]ou have acted the way lawyers at their best ought to act. And I have had a lot of cases...in 15 years now as a judge and I cannot recall a significant case where I felt people were better represented than they are here ... I would say this has been the best representation that I have seen." In Re: Waste Management, Inc. Securities Litigation, Civil Action No. 97-C 7709 (N.D. Ill.) (settled in 1999 for $220 million).
If you purchased CareScience common stock during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Sherrie R. Savett, Esquire Carole A. Broderick, Esquire Karen Orman, Esquire Kimberly A. Walker, Investor Relations Manager Berger & Montague, P.C. 1622 Locust Street Philadelphia, PA 19103 Phone: 888-891-2289 or 215-875-3000 Fax: 215-875-5715 Website: http://www.bergermontague.com e-mail: InvestorProtect@bm.net
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.