NEW YORK, April 15, 2005 (PRIMEZONE) -- Goodkind Labaton Rudoff & Sucharow LLP ("Goodkind Labaton") announces recent updates in the class action litigation filed 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").
By order dated March 21, 2005, (the "order") Goodkind Labaton was appointed by the Court to serve as Co-Lead Counsel for the Class in the now consolidated action In re SupportSoft Securities Litigation, Civil Action No. 04-CV-5222 (N.D. Cal.). Goodkind Labaton continues to conduct an extensive investigation into the allegations in the initial complaint. The firm expects to file its amended complaint by April 21, 2005.
A copy of the amended complaint will be available on Goodkind Labaton's website (www.glrslaw.com) on or about April 21, 2005. Goodkind Labaton's investigation has been aided, in large part, by the assistance of certain former employees of SupportSoft. If you are a former employee or have pertinent information relevant to the investigation, please feel free to contact Joseph Sternberg, Esq. at 800-321-0476.
The initial actions filed against the Company allege that Defendants violated the federal securities laws by issuing false and misleading statements regarding the Company's sales and its ability to execute. Specifically, the Company failed to disclose that in fact its business was not materially different from other enterprise software companies who had been experiencing a downturn in business, that its customers were also implementing additional hurdles making it difficult to gain approval for new and expanded deals, and that it was experiencing execution difficulties, ranging from implementation problems at customer sites to client relationship issues.
The Company's October 4, 2004, press release indicated that, in fact, it was very similar to other enterprise software vendors and that it expected total revenues to be meaningfully below its previous guidance. The Company then expected revenues to fall in a range of $11.9 million to $12.3 million, versus previous guidance of $16.7 million to $17.5 million. Shares reacted negatively to the news, dropping a stunning 35.4%, from $9.62 per share to $6.21 per share and have never recovered. Insider Defendants sold at least 350,000 of their own shares of SupportSoft ahead of the bad news for proceeds in excess of $3,000,000.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.