NEW YORK, Aug. 8, 2002 (PRIMEZONE) -- The law firm of Wechsler Harwood Halebian & Feffer LLP ("Wechsler Harwood") announces that a class action has been commenced in the United States District Court for the Central District of California on behalf all persons who purchased or acquired SeeBeyond Technology Corp. (Nasdaq:SBYN) ("SeeBeyond" or the "Company") securities between December 10, 2001 through April 22, 2002, inclusive (the "Class Period") against defendants SeeBeyond and certain of its officers and directors.
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 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 pre-announced 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.
If you are a member of the Class described above, and if you meet certain other legal requirements, you may, no later than September 2, 2002, move the Court to serve as a lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whhf.com) has more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood Halebian & Feffer LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 Patricia Guiteau, Wechsler Harwood Shareholder Relations Department: pguiteau@whhf.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.