NEW YORK, Aug. 6, 2002 (PRIMEZONE) -- A class action Complaint has been filed in the United States District Court for the Central District of California, civil action number 02 cv 35052, on behalf of all persons or entities who purchased securities of SeeBeyond Technology Corporation ("SeeBeyond" or the "Company") (Nasdaq:SBYN) between December 10, 2001 and April 22, 2002, both dates inclusive (the "Class Period"). SeeBeyond Technology Corporation, James T. Demetriades, Barry J. Plaga, Paul J. Hoffman, Raymond J. Lane, and Kathleen M. Mitchell are named as defendants in the complaint.
To discuss this action, this announcement, or your rights or interests, please contact plaintiff's counsel, Eric J. Belfi or Sharon Lee, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com.
The complaint charges SeeBeyond and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that during the Class Period, defendants made false statements about SeeBeyond's results and business, and concealed 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 for proceeds of $82 million, including 2 million shares sold by SeeBeyond's CEO Demetriades.
Immediately before the offering, SeeBeyond announced its fourth quarter 2001 results, which met analyst expectations. Defendants represented that the Company had met the numbers without pulling in sales from the first quarter 2002 such that first quarter 2002 results would be favorable as well. The Company indicated it had good visibility into first quarter 2002 results and forecast revenues of more than $44 million for that quarter.
On April 1, 2002, SeeBeyond pre-announced its first quarter 2002 results in a press release and conference call indicating it had revenues of $42.0 to $42.5 million in the first quarter 2002. 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 April 22, 2002, after the market closed, SeeBeyond admitted the first quarter 2002 revenues were actually only $40.3 million. On this news, the Company's stock dropped by 50% to $3.15 per share.
Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You can learn more information about Rabin & Peckel LLP at www.rabinlaw.com.
If you purchased SeeBeyond securities during the Class Period described above, you may, no later than September 2, 2002, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. Contact plaintiffs' counsel Eric J. Belfi or Sharon Lee of Rabin & Peckel LLP to further discuss this action, this announcement, or your rights or interests.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca