NEW YORK, Oct. 1, 2004 (PRIMEZONE) -- Murray, Frank & Sailer LLP filed a class action lawsuit on behalf of all securities purchasers of the Zix Corporation (Nasdaq:ZIXI)("Zix" or the "Company") from October 30, 2003 through May 4, 2004 inclusive (the "Class Period").
The complaint charges Zix, John A. Ryan, Steve M. York, Ronald A. Woessner, Daniel S. Nutkis, Russell J. Morgan, Wael Mohamed, and Dennis F. Heathcote with violations of Sections 10(b)-5 and 20(a) of the Securities Exchange Act of 1934, and Rule 10(b)-5 promulgated thereunder. 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) that the Company's deployment of e-prescription services was languishing; (2) that the Company seriously underestimated the hurdles of deploying e-prescription services in medical offices that lack up-to-date IT infrastructure; (3) as a result of these factors, the Company's deployment rate of 1,000 physicians a month was unattainable; and (4) as a consequence of the foregoing, the Company's projections lacked in any reasonable basis.
On May 4, 2004, Zix announced financial results for the first quarter ended March 31, 2004. In the press release, the Company's numbers were well below expectations. This news shocked the market. Shares of Zix fell $2.12 per share or 15.58 percent on May 5, 2004, to close at $11.49 per share. On the following day, shares of Zix fell an additional $2.60 per share or 22.63 percent to close at $8.89 per share.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or acquired the common stock of ZIXI between October 30, 2003 through May 4, 2004, inclusive, and sustained damages, you may, no later than November 2, 2004, move the Court to serve as lead plaintiff of the class. Shareholders outside the United States may also join the action, regardless of where they live or which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca