NEW YORK, July 16, 2004 (PRIMEZONE) -- Wechsler Harwood LLP today announced that it has filed a Federal Securities fraud class action on behalf of persons or entities who purchased or otherwise acquired the securities of Veritas Software Corporation (Nasdaq:VRTS) ("Veritas" or the "Company") from April 21, 2004 through July 2, 2004, both dates inclusive (the "Class Period").
The action, entitled Choon v. Veritas, et al., 04-CV-872 (not yet assigned), is pending in the United States District Court for the District of Delaware and names as defendants, the Company, its President and Chief Executive Officer, Gary L. Bloom, and its Chief Financial Officer and Executive Vice President of Finance, Edwin J. Gillis. A copy of the complaint can be obtained from the Court or can be viewed on the Wechsler Harwood web site at: www.whesq.com
The Complaint charges that defendants violated the Securities Exchange Act of 1934. More specifically, the Complaint alleges that defendants failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the defendants knew or recklessly disregarded the fact that the Company could not meet the financial expectations; (2) that defendants knew or recklessly disregarded the fact that earnings for the second quarter were unachievable because negotiations for significant contracts would not close prior to the close of the quarter; (3) that the Company lacked adequate internal controls; and (4) that as a result of the above, the defendants' statements concerning expectations were lacking in any reasonable basis when made.
On July 6, 2004, before the market opened, Veritas announced preliminary results for its fiscal second quarter ended June 30, 2004. The Company announced an unexpected earnings shortfall. News of this shocked the market. Shares of Veritas fell $9.55 per share to close at $17.00 per share, a drop of 36%.
If you purchased or otherwise acquired Veritas securities during the Class Period, you may request that the Court appoint you as lead plaintiff by September 7, 2004. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 Craig Lowther, Wechsler Harwood Shareholder Relations Department: clowther@whesq.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca