NEW YORK, April 28, 2006 (PRIMEZONE) -- Wechsler Harwood LLP today announced that it has filed a class action suit on behalf of all securities purchasers of Astea International Inc. (Nasdaq:ATEA) ("Astea" or the "Company") between May 11, 2005 and March 31, 2006, both dates inclusive (the "Class Period").
The action, entitled, Siqueira v. Astea International, Inc., et al. Case No. 06-CV-1800-WY, is pending in the United States District Court for the Eastern District of Pennsylvania, and names as defendants the Company as well as certain senior officers and directors. A copy of the complaint can be obtained from the Court or can be viewed on Wechsler Harwood web site at: www.whesq.com
Astea, headquartered in Horsham, Pennsylvania, engages in the development, marketing, and support of service management software used in various industries, such as information technology, medical, telecommunications, and other industries with equipment sales and service requirements.
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 during the Class Period, the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company lacked an adequate internal system of controls necessary to accurately ascertain the Company's overall condition; (2) that the Company's quarterly guidance concealed the true financial health of the Company; (3) that as a consequence of the foregoing, the Company's statements with respect to its future prospects and the intrinsic value of its business lacked in all reasonable basis.
According to the complaint, the defendants materially overstated and exaggerated Astea's financial health throughout the Class Period by failing to accurately account for the Company's software development costs under Generally Accepted Accounting Principles ("GAAP"). As a result, the complaint alleges that Astea overstated its earnings by failing to comply with GAAP when recording its expenses. On March 31, 2006, the Company announced that it would have to restate its financial results for the three quarters ended September 30, 2005, in order to adjust for the improper accounting. On news of the restatement, the price of Astea stock plummeted from $16.50 to $11.73 per share -- a loss of nearly 30% in a single day, on exceptionally high volume. During the Class Period, Astea stock traded as high as $25.71 per share.
If you are a member of the class described above, you may, not later than June 5, 2006, 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, employee investors and consumers and is responsible for hundreds of millions of dollars in recoveries. The Wechsler Harwood website (www.whesq.com) contains detailed information regarding this matter and additional information about the firm. 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 plaintiff's counsel Jeffrey M. Norton at (877) 935-7400 (ext. 286) or a firm representative.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca