NEW YORK, May 5, 2004 (PRIMEZONE) -- The Law Firm of Geller Rudman, PLLC announced today that a class action lawsuit has been filed in the United States District Court for the District of Colorado on behalf of purchasers of Quovadx, Inc. ("Quovadx" or the "Company") (Nasdaq:QVDX) publicly traded securities during the period between October 22, 2003 and March 15, 2004, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at http://www.geller-rudman.com/view_case.asp?cID=261&pcode=10&pp=4.
The complaint charges Quovadx, Lorine R. Sweeney, and Gary T. Scherping with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. More specifically, the Complaint alleges that defendants issued a number of materially false and misleading statements about its financial results. These positive statements failed to disclose and indicate: (1) that the Company had materially overstated its net income and earnings per share; (2) that defendants prematurely recognized revenue from contracts between the Company and Infotech Network Group in violation of generally accepted accounting principals ("GAAP"); (3) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (4) that as result of recognizing revenue prematurely, the Company's financial results were materially inflated at all relevant times.
On March 15, 2004, Quovadx announced that it would delay the filing of its annual report on Form 10-K for the year ended December 31, 2003 to restate its 2003 third quarter financial results and revise its previously announced preliminary 2003 fourth quarter and full year financial results. The Company had determined that revenue on prior shipments of software product to Infotech Network Group would be recognized only when cash was received. The restatement removed all revenue associated with contracts between the Company and Infotech Network Group from its published financial reports for 2003. News of this shocked the market. Shares of Quovadx fell $1.45 per share, or 28.8%, to close at $3.58 per share on unusually high trading volume.
If you bought Quovadx publicly traded securities between October 22, 2003 and March 15, 2004, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than May 17, 2004. If you are a member of this class, you can join this class action online at http://www.geller-rudman.com. Any member of the purported class may move the Court to serve as lead plaintiff through Geller Rudman or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Geller Rudman, PLLC is a national law firm that represents investors and consumers in class action and corporate governance litigation. It is one of the country's premier firms in the area of securities fraud, with in-house finance and forensic accounting specialists and extensive trial experience. Since its founding, Geller Rudman, PLLC has grown to become one of the most respected and successful firms representing investors and consumers in class action litigation. The firm came of age under the client focused realities of the Private Securities Litigation Reform Act of 1995, which provided new opportunities for institutional investors to assume leadership in combating securities fraud.
The firm's lawyers have achieved substantial recoveries for aggrieved investors and consumers in class action lawsuits prosecuted in state and federal courts throughout the nation. Geller Rudman, PLLC maintains a widely recognized reputation for excellence, as courts have repeatedly appointed the firm to major positions in intricate multi-district or consolidated litigations. In this regard, Geller Rudman, PLLC has successfully pursued hundreds of class action lawsuits, has taken a lead role in numerous complex litigations on behalf of defrauded investors and consumers and has been responsible for billions in recoveries as well as landmark corporate governance changes. The firm maintains offices in Boca Raton and New York.
If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at www.geller-rudman.com.