PHILADELPHIA, April 21, 2004 (PRIMEZONE) -- The law firm of Berger & Montague, P.C. has filed a securities fraud class action complaint in the United States District Court for the District of Colorado against Quovadx, Inc. ("Quovadx") (Nasdaq:QVDX) and certain of its officers, on behalf of purchasers of Quovadx common stock between October 22, 2003 and March 15, 2004 inclusive (the "Class Period").
The Complaint charges defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
Specifically, the Complaint alleges that Defendants issued numerous false and misleading statements concerning the Company's financial results. These statements failed to disclose that the Company had materially overstated its net income and earnings per share, that Defendants prematurely recognized revenue from contracts with Infotech Network Group, and that the Company lacked adequate internal controls to determine its true financial condition.
On March 15, 2004, Quovadx announced that it would: (i) delay the filing of its annual report on form 10-K for the year ended December 31, 2003; (ii) restate its third quarter 2003 financial results; and (iii) revise its previously announced fourth quarter and full year financial results. In response to this announcement, Quovadx shares fell $1.45 per share, losing approximately 28.8% of their value. Since the complaint was filed, CEO Lorine Sweeney and CFO Gary Scherping have resigned. In addition, Quovadx has announced that the SEC has notified the company that its previously announced informal inquiry concerning Infotech Network Group has become a formal investigation. Quovadx also said its audit committee has retained a law firm to conduct a special review of its relationship with Infotech and related disclosures.
If you purchased Quovadx during the Class Period of October 22, 2003 through March 15, 2004 inclusive, you may, no later than May 17, 2004, 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. If you have sustained substantial losses in Quovadx 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.
If you have any questions concerning this notice or your rights with respect to this matter, please contact:
Sherrie R. Savett, Esq. Douglas M. Risen, Esq. Diane R. Werwinski, 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