NEW YORK, Aug. 18, 2004 (PRIMEZONE) -- The law firm of Wechsler Harwood LLP announces that a securities class action lawsuit was commenced in the United States District Court for the Northern District of California on behalf of a class (the "Class") consisting of all persons who purchased or otherwise acquired securities of Callidus Software, Inc. ("Callidus" or the "Company") (Nasdaq:CALD) between November 19, 2003 and June 23, 2004, inclusive (the "Class Period").
The complaint charges Callidus, Michael A. Braun, Ronald J. Fior, Reed D. Taussig, John R. Eickhoff, R. David Spreng, Terry L. Opnendyk and George B. James with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) the Company's financials were suffering at the time of the IPO due to competition from established enterprise software vendors, including Siebel, and established ERP vendors, such as SAP, who could bundle their EIM offerings with other software products and therefore compete more aggressively on prices; (2) in the Company's license revenues, the Company was, prior to the Company's IPO, experiencing a material adverse trend in this business segment; (3) as a result of the Company experiencing a severe adverse trend in "license" revenue, the Company's future "service" revenue would be materially and adversely impacted for future quarters; (4) the Company used as a barometer for its sales forecasts its 18 quota-carrying sales representatives who were severely behind on hitting their unrealistic quotas; and (5) prior to the IPO, the Company had planned on bringing its Cezanne software team "in-house," which would dramatically impact the Company's earnings per share in future quarters.
On June 24, 2004, before the market opened, the Company issued a press release announcing that the Company's "chairman and chief executive resigned, and it warned that second-quarter and full-year results would not meet . . . financial targets." On this news the Company's shares fell to $5.01 per share, well below the Class Period high and even the IPO price.
Plaintiff is represented by the law firm of Wechsler Harwood LLP, which has extensive experience in prosecuting investor class actions involving financial fraud. Wechsler Harwood LLP has prosecuted securities, antitrust and consumer class actions for over 10 years. For more information about Wechsler Harwood LLP, please visit its website at www.whesq.com.
If you are a member of the class described above, you may, not later than September 7, 2004, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. You may retain Wechsler Harwood LLP, or other counsel of your choice, to serve as your counsel in this action.
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
Wechsler Harwood Shareholder Relations Department: clowther@whesq.com extension 257.