HARTFORD, Conn., May 15, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard, 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 District of Maryland on behalf of all persons who purchased or otherwise acquired the common stock of Sourcefire, Inc. ("Sourcefire" or the "Company") (Nasdaq:FIRE) pursuant and/or traceable to the Company's Registration Statement and Prospectus (collectively, the "Registration Statement") issued in connection with its March 9, 2007 initial public offering ("IPO") through April 9, 2007.
The Complaint alleges that Sourcefire and certain of its officers and directors violated Federal Securities laws by issuing false and misleading statements in the Registration Statement issued in connection with its IPO of 5,770,000 shares at $15.00 per share for estimated net proceeds of $71.8 million. Specifically, defendants represented that Sourcefire's revenues, gross profits and earnings were materially increasing. In reality, and unbeknownst to investors, revenues from the federal government component of Sourcefire's business had materially slowed due to lower spending by the federal government.
On April 6, 2007, Sourcefire announced preliminary results for the first-quarter that were lower than expected. Then on April 9, 2007, Sourcefire admitted that "a number of delays in the processing of awarded procurement transactions" from the federal government had negatively impacted its financial results. On this news, Sourcefire's stock declined from $17.35 per share on April 5, 2007 to close at $12.28 per share on April 9, 2007.
If you are a member of the class, you may, no later than July 13, 2007, 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 Izard, P.C. 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 Izard, P.C. toll-free at (800) 797-5499, or by e-mail at firm@snlaw.net, or visit our website: www.snilaw.com.