WEST PALM BEACH, Fla., Aug. 23, 2002 (PRIMEZONE) -- A shareholder has sued Eclipsys Corporation (Nasdaq:ECLP) and three top executives, claiming the company misled the public about its finances, Berman DeValerio Pease Tabacco Burt & Pucillo said today.
The complaint was filed August 22 in the U.S. District Court for the Southern District of Florida and assigned case no. 02-Civ-80799-Hurley/Lynch. It seeks damages for violations of federal securities laws on behalf of all investors who bought Eclipsys common stock from July 23, 2001 through June 27, 2002 (the Class Period).
Berman DeValerio has represented investors in class actions for 20 years. To review the complaint and learn more about becoming a lead plaintiff, please visit the firm's website at www.bermanesq.com.
The lawsuit claims that Eclipsys, a healthcare information technology company, and three of its top officers artificially inflated the stock price by making false and misleading statements about company profits. The complaint also alleges that Eclipsys insiders took advantage of the inflated stock price by dumping over $9.5 million of company shares soon after they made announcements touting strong growth.
To create the impression that the company's revenues were growing, Eclipsys issued highly positive statements throughout the Class Period touting the company's acquisition of new contracts, the lawsuits says. However, the plaintiff claims that, as early as July 2001, Eclipsys was well aware that new-sales bookings had slowed considerably and expenditures had accelerated. According to the complaint, Eclipsys failed to disclose this information to the public.
Then on October 22, 2001, investors were stunned when Eclipsys revealed that earnings would fall far short of expectations for the fourth quarter of 2001 because new-sales bookings were delayed and expenditures had increased. In response to the announcement, Eclipsys stock declined by 20% to trade at $12.50 per share.
The news grew worse for Eclipsys shareholders on June 27, 2002 when the company issued a news release announcing that results for the second quarter of 2002 would fall far short of the company's previous estimates. Instead of reporting a profit, as investors were led to believe, Eclipsys announced it would report a net loss. In response, Eclipsys stock plunged nearly 50% to around $6 per share.
If you purchased Eclipsys Corporation common stock during the period July 23, 2001 through June 27, 2002, you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
Michael J. Pucillo, Esq. Jay W. Eng, Esq. 515 North Flagler Drive Suite 1701 West Palm Beach, FL 33401 (561) 835-9400 lawfla@bermanesq.com
You may also visit the firm's website at www.bermanesq.com.
If you wish to apply to be lead plaintiff in this action, a motion must be filed on your behalf with the court no later than September 30, 2002. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. You may also retain counsel of your choice. To be a member of the class, however, you need not take any action at this time.
Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations and consumer fraud. The firm consists of 34 attorneys in Boston, San Francisco and West Palm Beach, Florida.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.