NEW YORK, Aug. 22, 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 Southern District of Florida on behalf all persons who purchased or acquired the securities of Eclipsys Corporation (Eclipsys or the "Company") (Nasdaq:ECLP) between July 23, 2001 and June 27, 2002, inclusive (the "Class Period") against defendants Eclipsys and certain of its officers.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between July 23, 2001 and June 27, 2002, thereby artificially inflating the price of Eclipsys' securities. As alleged in the complaint, defendants issued highly positive press releases regarding Eclipsys' addition 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. However, (i) during a six-week period in July to August 2001, insiders sold more than $9.5 million worth of Eclipsys' stock at or near the stocks two year highs; and (ii) unbeknownst to the investing public, although the defendants were aware that new-sales bookings had slowed considerably and expenditures in research and development and marketing and distribution had accelerated, the Company failed to timely disclose these facts to the public in any of Eclipsys public filings with the Securities and Exchange Commission or press releases.
On June 27, 2002, defendants issued a press release announcing that results for the second quarter of 2002 would fall short of the Company's previous statements. The Company announced it would report a net loss in the range of $0.07 to $0.10 per share. Trading price of Eclipsys' stock dropped nearly 50% in response to this.
If you are a member of the Class described above, and if you meet certain other legal requirements, you may, no later than September 30, 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 Craig Lowther, Wechsler Harwood Shareholder Relations Department: clowther@whhf.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.