PHILADELPHIA, Sept. 9, 2002 (PRIMEZONE) -- On July 26, 2002, the law firm of Berger & Montague, P.C. (http://www.bergermontague.com) filed a class action suit against Eclipsys Corporation, ("Eclipsys") (NASDAQ:ECLP) and its Chief Executive Officer, who is also a director, its Chief Financial Officer and its Chief Operating Officer in the United States District Court for the Southern District of Florida, Civil Action No. 02-80697 on behalf of all persons or entities who purchased Eclipsys common stock between July 23, 2001 and June 27, 2002, inclusive (the "Class Period").
The complaint alleges that Eclipsys and its three chief officers violated the federal securities laws by issuing false and misleading statements during the Class Period. Contrary to their positive statements, defendants -- according to the complaint -- were in possession of materially adverse information which they failed to disclose.
Specifically, during the Class Period, defendants trumpeted the large amount of new sales the Company was booking and the expansion of its sales force. 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 its 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 and pocket in excess of $9.69 million while privy to material adverse knowledge regarding the Company's true financial status.
On June 28, 2002, the Company shocked the market by announcing that instead of the profit that the Company had previously told the market to expect, the Company would report a loss of $0.07-0.10 per share due to fewer contracts closing. The price of Eclipsys stock tumbled nearly 50% on the announcement.
If you purchased Eclipsys common stock during the period from July 23, 2001 through June 27, 2002, inclusive, you may, no later than September 27, 2002, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. If you have sustained substantial losses in Eclipsys common stock during the Class Period, please contact Berger & Montague, P.C. at investorprotect@bm.net for a more thorough explanation of the Lead Plaintiff selection process.
The law firm of Berger & Montague, P.C. has over 50 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries of several billion dollars to investors. The firm is currently representing investors as lead counsel in actions against Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office Solutions, Inc. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example:
"Class counsel did a remarkable job in representing the class interests." In Re: IKON Offices Solutions Securities Litigation. Civil Action No. 98-4286(E.D.Pa.) (partial settlement for $111 million approved May, 2000). "(Y)ou have acted the way lawyers at their best ought to act. And I have had a lot of cases...in 15 years now as a judge and I cannot recall a significant case where I felt people were better represented than they are here ... I would say this has been the best representation that I have seen." In Re: Waste Management, Inc. Securities Litigation, Civil Action No. 97-C 7709 (N.D. Ill.) (settled in 1999 for $220 million).
If you purchased AOL securities during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Todd S. Collins, Esquire
Michael T. Fantini, Esquire
Kimberly A. Walker, Investor Relations Manager
Berger & Montague, P.C.
1622 Locust Street
Philadelphia, PA 19103
Phone: 888-891-2289 or 215-875-3000
Fax: 215-875-5715
Website: http://www.bergermontague.com
e-mail: InvestorProtect@bm.net
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca