NEW YORK, Sept. 16, 2005 (PRIMEZONE) -- Wechsler Harwood LLP today announced that it has filed a Federal Securities fraud class action suit on behalf of all purchasers of the common stock of Mercury Interactive Corporation ("Mercury Interactive" or the "Company") (Nasdaq:MERQE) acquiring the stock between October 22, 2003 and August 30, 2005, both dates inclusive (the "Class Period").
The action, entitled, Singhal v. Mercury Interactive Corp., et al., Case No. (not yet assigned), is pending in the United States District Court for the Northern District of California, and names as defendants, the Company, its Chief Executive Officer and Chairman of the Board, Amnon Landan, its Executive Vice President and Chief Financial Officer, Douglas P. Smith, its Chief Operating Officer and a director, Anthony Zingale, its Vice President, General Counsel and Secretary, Susan J. Skaer, its Senior Vice President of Corporate Development, David James Murphy III, its Senior Vice President of Products, Yuval Scarlat, and its Vice President of Finance Bryan LeBlanc. A copy of the complaint can be obtained from the Court or can be viewed on Wechsler Harwood web site at: www.whesq.com.
The Complaint charges defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the complaint alleges that the Company failed to disclose and misrepresented material adverse facts which were known to defendants or recklessly disregarded by them. In particular, the Complaint alleges that during the Class Period, defendants' internal controls and corporate compliance mechanisms were flawed and deficient, causing their stock to trade at artificially inflated levels. It further alleges that defendants concealed extraordinary auditing expenses in connection with the "highly likely" need to restate earnings for multiple quarters and years.
By concealing the Company's deficient and defective internal controls and corporate compliance mechanisms, as it is alleged, defendants were able to ensure the successful resale of notes received from selling holders in connection with the Company's $500 million convertible notes offering pursuant to the Company's registration statement/prospectus. The defendants also were able to sell $6.3 million in Company stock at inflated prices.
On July 5, 2005, defendants revealed the Company's previously undisclosed accounting irregularities and its ongoing internal investigation and auditing process, which already had incurred as much as $1 million in undisclosed expenses. Finally, on August 29, 2005, the Company announced it would restate its earnings results for 2002, 2003, 2004 and the first quarter of 2005 causing the stock to bottom out from a class period high of nearly $46.00 to a low of $36.74 on heavy trading volume.
If you are a member of the class described above, you may, not later than October 20, 2005 move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact Wechsler Harwood LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.