NEW YORK, Jan. 16, 2004 (PRIMEZONE) -- Rabin, Murray & Frank LLP announces that a class action lawsuit was filed on January 12, 2004, on behalf of purchasers of the securities of Micromuse, Inc. ("Micromuse" or the "Company") (Nasdaq:MUSEE) between January 20, 2000 and December 29, 2003, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). The action is pending in the United States District Court for the Northern District of California, numbered C-04-0136, and names Micromuse, Inc., Gregory Q. Brown, Lloyd Carney, and Michael Luetkemeyer as defendants. The complaint maintains 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.
The complaint further alleges that during the Class Period, defendants knowingly or recklessly issued materially false and misleading financial statements that misrepresented the Company's earnings and shareholder equity. During this period, Company insiders sold Micromuse stock for proceeds of approximately $174 million.
On December 30, 2003, the Company announced that filing of its annual report on Form 10-K would be delayed pending completion of an internal inquiry, primarily regarding accounting for accrued expenses and expense recognition, and that the Company expected the inquiry to lead to a restatement of financial results for the fiscal years ending on September 20th of 2000, 2001, 2002 and 2003. In reaction to this announcement, the price of Micromuse common stock dropped by 12.4%, from a closing price of $6.90 on December 29, 2003 to its closing price of $6.59, a 4% decrease on volume ten times greater than average.
Plaintiff is represented by the law firm of Rabin, Murray & Frank LLP. Rabin, Murray & Frank LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired shares of Micromuse, Inc. between January 20, 2000 and December 29, 2003 and sustained damages, you may, no later than March 15, 2004, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at www.rabinlaw.com. Contact plaintiff's counsel Eric J. Belfi or Gregory Linkh of Rabin, Murray & Frank LLP to further discuss this action, this announcement, or your rights or interests.