LOS ANGELES, July 23, 2004 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the Eastern District of North Carolina on behalf of a class (the "Class") consisting of all persons who purchased or otherwise acquired securities of Red Hat, Inc. ("Red Hat" or the "Company")(Nasdaq:RHAT) between June 19, 2001 and July 13, 2004, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Red Hat and certain of the Company's executive officers with violations of federal securities laws. Plaintiff claims that defendants' omissions and material misrepresentations concerning Red Hat's financial performance artificially inflated the Company's stock price, inflicting damages on investors. Red Hat provides open-source-based IT infrastructure and systems management services for large enterprises. Plaintiff alleges that the Company failed to disclose and misrepresented material adverse facts which defendants knew or recklessly disregarded, including: (1) that the Company inappropriately recognized revenues from subscriptions; (2) that, as a result, the Company manipulated its quarterly earnings, as its net income and operating income were at all relevant times materially overstated; (3) that the Company's financial results were in violation of Generally Accepted Accounting Principles; (4) that the Company lacked adequate internal controls; and (5) that the Company's financial results were materially and artificially inflated at all relevant times.
On July 13, 2004, Red Hat announced it had corrected its revenue recognition practices for certain subscription agreements and, consequently, would restate its audited financial statements for the fiscal years ended February 2002, 2003 and 2004, and its unaudited financial statements for the fiscal quarter ended May 31, 2004. This news shocked the market. Shares of Red Hat fell 22.70 percent.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than September 13, 2004, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca