PHILADELPHIA, July 21, 2004 (PRIMEZONE) -- The law firm of Spector, Roseman & Kodroff, P.C. announces that a class action lawsuit was commenced in the United States District Court for the Southern District of New York, on behalf of purchasers of the common stock of Business Objects S.A. ("Business Objects" or the "Company") (Nasdaq:BOBJ) between April 23, 2003 through April 29, 2004, inclusive (the "Class Period").
The Complaint alleges that defendants violated the federal securities laws by issuing materially false and misleading statements contained in press releases and filings with the Securities and Exchange Commission during the Class Period which artificially inflated the company's stock price. Specifically, the Complaint alleges that during the Class Period: (i) the Company failed to successfully integrate Crystal Decisions, a software company acquired during the Class Period; (ii) the Company was experiencing slower than projected revenue growth; (iii) the Company had improperly recognized deferred revenues from a backlog of customer contracts, thereby materially inflating the Company's reported financial results; and (iv) the demand for Business Objects' Enterprise 6 software was less than reported by the Company, and that the software was unstable and potentially incompatible with other of the Company's products.
On April 29, 2004, Business Objects reported disappointing first-quarter 2004 results, including earnings of $0.10 per diluted share, which was at the bottom of the range previously forecast by defendants, and missed analysts' consensus estimates of $0.15. Moreover, the Company reported disappointing revenues of $217 million and provided second-quarter 2004 guidance which was well below analysts' consensus estimates. In reaction to this news, the price of the Company's American Depository Shares dropped $6.66, or 23.3%, from their closing price on April 29, 2004, to close on April 30, 2004 at $21.92, on unusually high volume. On May 4, 2004, Business Objects disclosed in its first-quarter 2004 report, filed with the SEC, that the SEC had commenced an informal inquiry into the Company's "practices with respect to backlog", or customers contracts that have not yet been recognized on a company's balance sheet or income statement.
If you purchased Business Objects securities during the Class Period, you may, no later than August 2, 2004, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in Business Objects securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action, please visit http://www.srk-law.com/dbjoinaclassaction.asp. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via e-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca