NEW YORK, Jan. 31, 2005 (PRIMEZONE) -- Roy Jacobs & Associates reminds investors that there is only one week left for purchasers of Supportsoft, Inc. (Nasdaq:SPRT) to move for lead plaintiff in this securities fraud class action. If you purchased or otherwise acquired publicly traded securities of SPRT 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.
It is alleged 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 Radha R. Basu, the Chairman and Chief Executive Officer, and Brian M. Beattie, the Chief Financial Officer 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.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.