HARTFORD, Conn., April 28, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Eastern District of Pennsylvania on behalf of all persons who purchased or otherwise acquired the publicly traded securities of Astea International, Inc. ("Astea" or the "Company") (Nasdaq:ATEA) between May 11, 2005 and March 31, 2006, inclusive, (the "Class Period"). Also included are all those who acquired Astea's shares through its acquisition of FieldCentrix.
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements. Specifically, defendants failed to disclose and misrepresented the following material adverse facts: (i) that the Company lacked an adequate internal system of controls necessary to accurately ascertain the Company's overall condition; (ii) that the Company's quarterly guidance concealed the true financial health of the Company; and (iii) 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 condition 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, 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 this news, the price of Astea stock plummeted from $16.50 to $11.73 per share, a loss of nearly 30%. During the Class Period, Astea stock traded as high as $25.71 per share.
If you are a member of the class, you may, no later than June 27, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.