NEW YORK, Oct. 6, 2004 (PRIMEZONE) -- Goodkind Labaton Rudoff & Sucharow LLP filed a class action lawsuit on October 5, 2004 in the United States District Court for the Northern District of Texas, on behalf of persons who purchased or otherwise acquired publicly traded securities of Zix Corporation ("Zix" or the "Company") (NASDAQ:ZIXI) between October 30, 2003 and May 4, 2004, inclusive, (the "Class Period"). The lawsuit was filed against Zix and Ronald A. Woessner, John A. Ryan, Daniel S. Nutkis, Steve M. York, Russell J. Morgan, Wael Mohamed and Dennis F. Heathcote ("Defendants").
If you are a member of this class you can view a copy of the complaint and join this class action online at http://www.glrs.com/get/?case=Zix
The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that during the Class Period, Defendants disseminated materially false and misleading statements about its business and future prospects. More specifically, Defendants concealed during the Class Period that it was experiencing sluggish physician adoption rates to its e-prescribing service, that it was not even close to achieving its guidance of 1,000 deployed active doctors by the end of Q4 2003, that its claim that it had 4,000 physician deployments already in place was false as it had not surveyed physician sites to determine their wireless needs.
On May 2, 2004, Zix announced that its results for Q1 2004 would generate a larger than expected loss. In reaction to the news, shares of Zix fell nearly 50% in the following trading sessions to eventually trade below $7 per share.
Plaintiffs are represented by the law firm of Goodkind Labaton Rudoff & Sucharow LLP. Goodkind Labaton is one of the country's premier national law firms that represent individual and institutional investors in class action, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts. Goodkind Labaton was recently ranked fourth in total recoveries in 2003 among the top 50 plaintiffs' law firms by Institutional Shareholder Services (ISS), the world's leading provider of proxy and corporate governance services. Notably, Goodkind Labaton recovered over half a billion dollars for its clients last year.
If you bought Zix securities between October 30, 2003 and May 4, 2004, inclusive, you may qualify to serve as Lead Plaintiff. Lead Plaintiff papers must be filed with the court no later than November 2, 2004. If you would like to consider serving as lead plaintiff or have any questions about the lawsuit, please contact one of our representatives at or Christopher Keller, Esq. at 800-321-0476.