NEW YORK, Jan. 5, 2005 (PRIMEZONE) -- Goodkind Labaton Rudoff & Sucharow LLP, reminds investors that the deadline for purchasers of Supportsoft, Inc. ("Supportsoft" or the "Company") (Nasdaq:SPRT) to move for lead plaintiff in this securities fraud class action is rapidly approaching. The lawsuit was filed against Supportsoft and Radha R. Basu and Brian M. Beattie ("Defendants"). If you purchased or otherwise acquired publicly traded securities of Supportsoft between January 20, 2004 and October 1, 2004, inclusive, (the "Class Period") and wish to be a lead plaintiff in the case you must move to serve as a lead plaintiff by filing a motion in the United States District Court for the Northern District of California no later than February 7, 2005.
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=Supportsoft.
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 Defendants issued a series of false and misleading statements to the market during the Class Period. These statements were false and misleading because the Company failed to disclose that its business model was in fact not materially differentiated from other enterprise software companies, that its customers were implementing additional hurdles to contract approvals and that it was experiencing execution difficulties.
On October 4, 2004, the Company announced its preliminary financial results for the third quarter 2004, ended September 30, 2004. The Company announced that it expected total revenues for the third quarter 2004 to be in the range of $11.9 million to $12.3 million as compared to $13.5 million for the same period the prior year. The Company claimed that a "tightness in IT spending" and "more complex approval processes" was the reason for the significant miss. 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.
If you bought Supportsoft securities between January 20, 2004 and October 1, 2004, inclusive, and would like to obtain information about the lawsuit, please contact one of our representatives or Christopher Keller, Esq. at 800-321-0476.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca