NEW YORK, June 4, 2007 (PRIME NEWSWIRE) -- A class action lawsuit 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) in connection with its March 9, 2007 Initial Public Offering ("IPO") through April 9, 2007.
The lawsuit alleges that Sourcefire and certain of its officers and directors violated Federal Securities laws by issuing false and misleading statements in the Company's Registration Statement and Prospectus issued in connection with its IPO of 5,770,000 shares at $15.00 per share. 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, less than a month after the IPO, 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. 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 can participate in important decisions which could affect the recovery for class members.
If you wish to discuss this action, or have any questions concerning this notice or your rights, please contact us, toll free, at (888) 529 4787 or by email at info.newcases@kmslaw.com.
Kirby McInerney & Squire, LLP has specialized in complex litigation, including securities class actions, for several decades. The firm has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and the firm's achievements and quality of service have been chronicled in numerous published decisions. More information about the firm, class actions in general, or about the role of the lead plaintiffs in a securities class action can be obtained through Kirby McInerney & Squire, LLP's website at http://www.kmslaw.com