BALA CYNWYD, Pa., July 23, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Central District of California on behalf of all purchasers of the common stock of SeeBeyond Technology Corp. ("SeeBeyond") (Nasdaq:SBYN) common stock during the period between Dec. 10, 2001 and April 22, 2002, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges SeeBeyond Technology Corp. and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that during the Class Period, defendants made positive but false statements about SeeBeyond's results and business, while concealing material adverse information about customers pushing out orders. As a result, SeeBeyond's stock traded at artificially inflated levels, permitting defendants to complete a secondary public offering of 8.5 million shares (plus 1.2 million of an over allotment) for proceeds of $82 million, including 2 million shares sold by SeeBeyond's CEO.
Immediately before the offering, SeeBeyond announced its 4thQ 01 results, which met analyst expectations. Defendants represented that the Company had met the numbers without pulling in sales from the 1stQ 02 such that 1stQ 02 results would be favorable as well. The Company indicated it had good visibility into 1stQ 02 results and forecast revenues of more than $44 million for that quarter.
On 4/1/02, SeeBeyond preannounced its 1stQ 02 results in a press release and conference call indicating it had revenues of $42.0 to $42.5 million in the 1stQ 02. The stock declined somewhat on what was termed a "slight miss" from earnings estimates. Within hours of this release, SeeBeyond's auditors called the Company objecting to its revenue recognition on at least $2.2 million in transactions. SeeBeyond concealed this problem over the following weeks. Then, on 4/22/02, after the market closed, SeeBeyond admitted the 1stQ 02 revenues were actually only $40.3 million. On this news, the Company's stock dropped by 50% to $3.15 per share.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, LLP, which prosecutes class actions on behalf of investors and shareholders. For more information on Schiffrin & Barroway, or to sign-up to participate in this action online, please visit http://www.sbclasslaw.com/cgi/signup.cgi.
If you are a member of the class described above, you may, not later than September 2, 2002, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primezone.com/ca