BALA CYNWYD, Pa., March 6, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
A securities class action lawsuit pending in the U.S. District Court for the Northern District of California claims that Critical Path, Inc. ("Critical Path") (Nasdaq:CPTH) misled shareholders about its business and financial condition.
Plaintiff seeks damages for violations of Sections 10(b), 20(a) of the Securities Exchange Act of 1934 on behalf of all investors who bought Critical Path, Inc. securities between April 21, 2000 and September 25, 2000 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Critical Path, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our Website at www.sbclasslaw.com.
The complaint alleges that the California-based Critical Path, Inc. and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Critical Path provides e-mail hosting services to a variety of organizations, including Internet service providers, Web hosting companies, Web portals, and corporations. Many of these types of companies were new and were suffering from a downturn in Internet-related funding which began in the spring of 2000. The complaint alleges that the problems many of these companies were having raising money had reached crisis levels and were impacting Critical Path's ability to collect receivables. Defendants had also known for months that new accounting regulations would negate the Company's ability to continue to recognize up-front license fees in Q4 2000. Defendants knew this would severely impair Critical Path's future revenue growth and impair their ability to make future stock sales and extract future bonuses which were tied to the Company's performance. Thus, defendants continued to make positive but false statements about Critical Path's business and projections for Q3/Q4 2000 and beyond.
If you purchased Critical Path, Inc. securities between April 21, 2000 and September 25, 2000, you may be a member of the class and have until April 5, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our Website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca