ATLANTA, Match 10, 2003 (PRIMEZONE) -- Chitwood & Harley announces that it has filed a class action lawsuit in the United States District Court for the District of Massachusetts, on behalf of purchasers of securities of Parametric Technology Corporation, (Nasdaq:PMTC) between October 19, 1999 and December 31, 2002, (the "Class Period"). The suit is brought against Parametric Techology Corporation and certain of its officers and directors. A copy of the complaint is available on our website, www.classlaw.com. The deadline to file lead plaintiff papers, for those class members wishing to serve in this capacity, is April 15, 2003.
There are certain legal requirements to serve as lead plaintiff, which we would be happy to discuss with you. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, you may contact Lauren Antonino or Jennifer Morris at 1-888-873-3999 (toll-free) or by e-mail at jlm@classlaw.com. You may also contact us through our website by clicking on Parametric Technology.
The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market during the Class Period thereby artificially inflating the price of Parametric securities. The complaint alleges that, throughout the Class Period, Defendants' statements and quarterly and annual reports filed with the SEC which described the Company's increasing revenues and financial performance were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (a) that since fiscal 1999, in violation of Generally Accepted Accounting Principles and its own revenue recognition policies, the Company had cumulatively overstated its previously recognized maintenance revenue from its service contracts by approximately $33.4 million; (b) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (c) that as a result, the value of the Company's income and financial results were materially overstated at all relevant times.
On December 31, 2002, Parametric shocked the market by announcing that it had identified "$20 to $25 million of previously recognized maintenance revenue which should have been deferred and recognized in fiscal 2003 and later periods." Consequently, the Company announced it "expects to report a corresponding reduction in maintenance revenue in prior periods, primarily in fiscal year 2002." Subsequent disclosures revealed that the Company would be restating its financial results from fiscal year 1999 through fiscal year 2002 because a cumulative total of $33.4 million in maintenance revenue had improperly been reported as revenue during that time.
Chitwood & Harley LLP is a class action firm that concentrates its practice in representing victims of securities fraud and corporate mismanagement, as well as other complex litigation. Chitwood & Harley has been appointed lead counsel in major actions throughout the United States and has been instrumental in recovering billions of dollars on behalf of its clients. Clients and courts alike have praised the results achieved by Chitwood & Harley. Recently, the federal judge in In re BankAmerica Securities Litigation, which resulted in the highest recovery last year in a securities class action, commented favorably on counsel's performance stating: "Class members were well served by experienced attorneys who, through considerable time and effort, obtained a significant recovery for their clients," and, "(a)s the Court has remarked throughout this litigation, class counsel ... have performed at exceptionally high levels, and all parties have been exceedingly well represented."
For more information about Chitwood & Harley, please visit our website at www.classlaw.com or contact Jennifer Morris at 1-888-873-3999 (toll-free), by e-mail at jlm@classlaw.com or at 1230 Peachtree Street, Suite 2300, Atlanta, Georgia 30309.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca