PHILADELPHIA, Feb. 12, 2001 (PRIMEZONE) -- The law firm of Berger & Montague, P.C. (http://www.investorprotect.com) filed a class action on Feb. 6 in the United States District Court for the Northern District of California on behalf of all persons or entities who purchased Critical Path, Inc. (Nasdaq:CPTH) common shares during the period from November 2, 2000 through February 1, 2001 inclusive.
The complaint charges Critical Path and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Critical Path provides e-mail hosting services to a variety of organizations, including Internet service providers, Web hosting companies, Web portals, and corporations. The complaint alleges that many of these types of companies were suffering from a downturn in Internet-related funding which began in the spring of 2000. By September 2000 at the latest, the problems many of these companies were having raising money had reached crisis levels. Defendants had also known for months that new accounting regulations would negate the Company's ability to continue to recognize up-front license fees in Q4 2000. Defendants knew this would severely impair Critical Path' s revenue growth, nevertheless, defendants continued to make positive but false statements about Critical Path's business and future revenues during Q4 2000. As a result, Critical Path's stock traded as high as $48.
On January 18, 2001, after the market closed, Critical Path announced that in the fourth quarter 2000 it would report a multi-million-dollar loss. This was directly contrary to what Critical Path's CEO had told shareholders and analysts just weeks before. Then, on February 2, 2001, Critical Path announced that the Company's results reported on January 18, 2001, were materially misstated. This disclosure shocked the market, causing Critical Path's stock to decline to less than $4 per share in pre-market trading. Trading in the stock was then suspended and it has not yet resumed.
The lawsuit seeks to recover losses suffered by individual and institutional investors who purchased shares of the Company during the class period, excluding defendants and their affiliates.
If you purchased Critical Path Inc.'s common stock during the period from November 2, 2000 through February 1, 2001 inclusive, you may, no later than April 3, 2001, move to be appointed lead plaintiff. 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.
The law firm of Berger & Montague, P.C. has over 50 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries of several billion dollars to investors. The firm is currently representing investors as lead counsel in actions against Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office Solutions, Inc. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example:
"Class counsel did a remarkable job in representing the class interests." In Re: IKON Offices Solutions Securities Litigation. Civil Action No. 98-4286(E.D.Pa.) (partial settlement for $111 million approved May, 2000).
"...[Y]ou have acted the way lawyers at their best ought to act. And I have had a lot of cases ... in 15 years now as a judge and I cannot recall a significant case where I felt people were better represented than they are here... I would say this has been the best representation that I have seen." In Re Waste Management, Inc. Securities Litigation, Civil Action No. 97-C 7709 (N.D. Ill.) (settled in 1999 for $220 million).
If you purchased Critical Path, Inc., common stock during the Class Period or have any questions concerning this notice or your rights with respect to this matter, you may contact:
More information on this and other class actions can be found at www.primezone.com/ca