LOS ANGELES, Oct. 7, 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 Northern District of Texas on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of Zix Corporation ("Zix" or the "Company") (Nasdaq:ZIXI) between October 30, 2003 and May 4, 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 Zix and certain of the Company's executive officers with violations of federal securities laws. Plaintiff claims defendants' omissions and material misrepresentations concerning Zix's operations and prospects artificially inflated the Company's stock price, inflicting damages on investors. The Complaint alleges that Zix, a global provider of e-messaging protection and transaction services, failed to disclose and misrepresented material adverse facts, which were known to or recklessly disregarded by defendants, including: (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) that, 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, that the Company's projections lacked any reasonable basis.
On May 4, 2004, Zix announced financial results for the first quarter ended March 31, 2004. In a press release, the Company reported numbers well below expectations. This news shocked the market, and on May 5, 2004, shares of Zix fell $2.12 per share, or 15.58 percent, to close at $11.49 per share. The next day, shares of Zix fell an additional $2.60 per share, or 22.63 percent, to close at $8.89 per share.
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 November 2, 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