PHILADELPHIA, Aug. 14, 2002 (PRIMEZONE) -- On August 9, 2002, a class action lawsuit was filed by the Law Offices Bernard M. Gross in the United States District Court for the Southern District of Florida, West Palm Beach, on behalf of all persons and entities who purchased or otherwise acquired the common stock of Eclipsys Corporation (Nasdaq:ECLP) ("Eclipsys" or the "Company"), between July 23, 2001 and June 27, 2002, inclusive (the "Class Period").
The action, numbered 02-CV- 80753, is pending in the United States District Court, Southern District of Florida, West Palm Beach Division, located at Rogers Federal Building & United States Courthouse, 701 Clematis St., West Palm Beach, Fl 33401, against defendants Eclipsys, Robert Joseph Colletti, Harvey J. Wilson, and John T. Patton. The Honorable Barry S. Seltzer is presiding over the case. A copy of the Complaint is available from the Court or the Law Offices Bernard M. Gross, P.C. Please visit our website at http://www.bernardmgross.com or contact us by phone at 866-561-3600 (toll free) or by E-mail at susang@bernardmgross.com.
The complaint charges Eclipsys, Robert Joseph Colletti, Chief Financial Officer, Officer, Harvey J. Wilson, Chief Executive Officer and, John T. Patton, Chief Operating Officer, with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5, by issuing a series of materially false and misleading statements to the market during the Class Period. According to the complaint, throughout the Class Period, defendants issued highly positive statements regarding Eclipsys' acquisition of new contracts for its information technology, in an effort to create the impression that Eclipsys' revenues were growing and the Company was well positioned to generate strong profitability. In making these announcements, defendants knew or recklessly ignored that the Company was experiencing a decline in demand for its information technology and that it had failed to sufficiently increase it expenditures for research and development, costs necessary to correct operational problems at the platform-level of its technology. This fraudulent course of conduct allowed Eclipsys insiders, including the named defendants, to sell over 388,500 shares of Eclipsys stock and pocket in excess of $9.69 million while privy to material adverse facts regarding the Company's true financial status.
On June 27, 2002, defendants issued a press release announcing that results for the second quarter of 2002 would fall short from the Company's previous guidance. Instead of reporting a profit of $0.12 a share, as investors were led to believe, the Company announced it would report a net loss in the range of $0.07 to $0.10 per share. In response, the trading price of Eclipsys stock plunged nearly 50%, trading at slightly over $6 per share.
Law Offices Bernard M. Gross, P.C. has significant experience and expertise in prosecuting class actions Law Offices Bernard M. Gross P.C. has recently filed cases in the following securities:
COMPANY SYMBOL PURCHASED DURING LEAD PLAINTIFF
CLASS PERIOD FILING DEADLINE
Capital One COF-NYSE 1/15/00-7/16/02 9/17/02
Financial
Corporation
Citigroup, Inc. C-NYSE 7/24/99-7/23/02 9/23/02
Cross Media XMM-NYSE 11/5/01-7/11/02 9/16/02
Marketing
Corporation
Eclipsys ECLP-NASDAQ 7/23/01-6/27/02 9/27/02
Corporation
Flextronics FLEX-NASDAQ 10/20/01-6/4/02 8/19/02
Int'l Ltd.
Insight NSIT-NASDAQ 4/26/02-7/17/02 9/27/02
Enterprises, Inc.
Merck & Co. MRK-NYSE 7/1/99-6/21/02 8/30/02
Touch America TAA-NYSE 1/30/01-11/14/02 8/26/02
f/k/a Montana
Power Company
PerkinElmer, Inc. PKI-NYSE 7/15/01-4/11/02 9/6/02
Plaintiff seek to recover damages on behalf of Class members and is represented by the law firm of Law Offices Bernard M. Gross, P.C. which has significant experience and expertise in prosecuting class actions.
If you bought the common stock of Eclipsys between July 23, 2001 and June 27, 2002, you may, no later than September 27, 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. If you wish to discuss this action or have any questions concerning this Notice or rights or interests with respect to these matters, please contact:
Law Offices Bernard M. Gross, P.C. Deborah R. Gross, Esquire Susan Gross, Esquire 1515 Locust Street, Second Floor Philadelphia, PA 19102
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca