BALA CYNWYD, Pa., Jan. 20, 2005 (PRIMEZONE) -- Law offices of Brodsky & Smith, LLC today announces that a lawsuit seeking class action status has been filed in the United States District Court for the Northern District of California on behalf of all persons (the "Class") who purchased the securities of Supportsoft, Inc. ("Supportsoft" or the "Company")(Nasdaq:SPRT) between January 20, 2004 and October 1, 2004 (the "Class Period"). The Complaint names the following Defendants: Supportsoft, Radha R. Basu and Brian M. Beattie. A copy of the Complaint filed in this action can be obtained from the Court or you can call our offices toll free at either 877-534-2590 to speak with an attorney regarding this matter and we will send you a copy of the Complaint.
The Complaint alleges that, during the Class Period, Defendants violated Sections 10(b) and 20(a) of the Securities Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the Complaint alleges that, during the Class Period, Defendants issued a series of false and misleading statements to the market regarding its financial performance. The Complaint alleges that Defendants' 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, which ended on September 30, 2004. The Company announced that it now expected total revenues for the third quarter of 2004 to be between $11.9 million and $12.3 million -- as compared to $13.5 million for the same period in 2003. The Company claimed that an alleged "tightness in IT spending" and "more complex approval processes" were the reasons for this significant miss in earnings. On this news, the Company's share price dropped precipitously from $9.62 per share to $6.21 per share -- a drop of 35.4% on extremely heavy trading volume.
If you are purchased Supportsoft securities between January 20, 2004 and October 1, 2004 (inclusive), you may qualify to serve as a lead plaintiff on behalf of the Class. All motions for appointment as a lead plaintiff must be filed with the Court no later than February 7, 2005. Any member of the proposed Class may move the Court to serve as lead plaintiff in this action through counsel of his or her choice, or may remain an absent class member. There are certain legal requirements to serve as lead plaintiff, which we would be pleased to discuss with you. If you would like to discuss this action or have any question regarding this notice or your rights, please contact Marc L. Ackerman, Esquire or Evan J. Smith, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by e-mail at clients@brodsky-smith.com, or by calling toll free 877-534-2590.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca