ATLANTA, May 6, 2003 (PRIMEZONE) -- Chitwood & Harley LLP reminds purchasers of Cerner Corporation ("Cerner" or the "Company") (Nasdaq:CERN) securities that the deadline to file lead plaintiff papers in the securities fraud class actions pending against Cerner in the United States District Court in the Western District of Missouri is June 2, 2003. Although the original suit was brought on behalf of purchasers of Cerner securities from January 23, 2003 and April 2, 2003, Chitwood & Harley is investigating an expanded class period, which would include purchasers of Cerner securities from July 17, 2002 through April 2, 2003 (the "Class Period"). If you would like to discuss the proceedings or your rights in connection with this matter, please contact Jennifer Morris at 1-888-873-3999 extension 6883 or by email at jlm@classlaw.com or through our website, www.classlaw.com.
Defendants are charged with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder for having failed to disclose and for having misrepresented the following adverse facts, among others: (a) that the Company was experiencing an increased level of competition as competitors slashed prices in order to take business from the Company. As a result, the Company was losing a material amount of sales to competitors; (b) that certain of the Company's clients were delaying or deferring the purchase of products from the Company or determining not to proceed with those purchases at all; (c) that the Company had reorganized its sales force and that the reorganization was negatively impacting the ability of the Company to close certain sales; and (d) as a result of the foregoing, defendants' earnings projections were lacking in a reasonable basis at all times and were materially false and misleading.
On April 3, 2003, Cerner shocked the market by announcing that "it expects its first quarter 2003 revenue and earnings to be below expectations because of a lower level of new business bookings in the quarter." The press release further revealed that the Company expected bookings for the first quarter of 2003 to be between $145 and $150 million and that earnings would be between $0.13 to $0.15 per share as compared to analysts' earnings estimates of $0.38 per share. The market reacted swiftly to this news, pushing the price of Cerner common stock down over 45%, to close at $17.63 on extremely heavy trading volume.
If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, you may contact Jennifer Morris at 1-888-873-3999 (toll-free) ext. 6883 or by e-mail at jlm@classlaw.com. You may also contact us through our website, www.classlaw.com by clicking on Cerner. If you wish to serve as lead plaintiff in this action, you must file a motion to do so no later than June 2, 2003. To be a member of the class, you need not take any action at this time and you may retain counsel of your own choice.
Chitwood & Harley LLP is a class action firm that concentrates its practice in representing victims of securities fraud and corporate mismanagement, as well as other complex litigation. Chitwood & Harley has been appointed lead counsel in major actions throughout the United States and has been instrumental in recovering billions of dollars on behalf of its clients. Clients and courts alike have praised the results achieved by Chitwood & Harley. Recently, the federal judge in In re BankAmerica Securities Litigation, which resulted in the highest recovery last year in a securities class action, commented favorably on counsel's performance stating: "Class members were well served by experienced attorneys who, through considerable time and effort, obtained a significant recovery for their clients," and, "(a)s the Court has remarked throughout this litigation, class counsel ... have performed at exceptionally high levels, and all parties have been exceedingly well represented."
For more information about Chitwood & Harley LLP, please visit our website at www.classlaw.com or contact Jennifer Morris at 1-888-873-3999 (toll-free), by e-mail at jlm@classlaw.com or at 1230 Peachtree Street, Suite 2300, Atlanta, Georgia 30309.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.