NEW YORK, Dec. 13, 2004 (PRIMEZONE) -- Roy Jacobs & Associates has filed a class action in the United States District Court for the Northern District of California on behalf of persons who purchased or otherwise acquired publicly traded securities of Supportsoft, Inc. ("Supportsoft" or the "Company") (Nasdaq:SPRT) between January 20, 2004 and October 1, 2004, inclusive, (the "Class Period"). The lawsuit was filed against Supportsoft, Radha R. Basu, the Chairman and Chief Executive Officer, and Brian M. Beattie, the Chief Financial Officer ("Defendants").
For further information you may call toll free, 888-884-4490, or contact Roy Jacobs & Associates by e-mail by writing to classattorney@pipeline.com.
The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 by issuing a series of false and misleading positive statements to the investing public which touted the Company and its continuing financial performance, but failed to disclose material business problems.
While the defendants were making these positive statements, defendants Basu and Beattie were selling their own Supportsoft shares for proceeds of millions of dollars.
Having previously predicted revenues of $16.7 to $17.7 million for the Third Quarter of 2004, on October 4, 2004, the Company was forced to admit that actual revenues would be far below those figures, in the range of $11.9 million to $12.3. On this news, the Company's share price dropped from $9.62 per share to $6.21 per share, representing a drop of 35.4% on extremely heavy trading volume. Accordingly, millions of dollars of shareholder value has been lost as a result of the wrongful conduct alleged. The Company's share price has not recovered.
Please feel free to contact Roy L. Jacobs to discuss the pending action, and your rights in this matter.