BALA CYNWYD, Pa., July 24, 2003 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Eastern District of Missouri on behalf of all purchasers of the common stock of Tripos, Inc. ("Tripos" or the "Company") (Nasdaq:TRPS) from January 9, 2002 through July 1, 2002, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between January 9, 2002 and July 1, 2002, thereby artificially inflating the price of Tripos common stock. The Complaint alleges that these statements were materially false and misleading because they failed to disclose and misrepresented the following adverse facts, among others: (a) that the Company was experiencing weakening demand for its products and services as its customers were delaying, deferring or canceling purchases; (b) that the Company was experiencing severe and material problems with a certain contract and therefore would not be able to recognize revenue on that contract as anticipated; and (c) as a result of the foregoing, defendants lacked a reasonable basis for their earnings projections and positive statements about Tripos.
On July 1, 2002, Tripos shocked the market when it announced that, contrary to its repeated representations throughout the Class Period, it would not meet its earnings guidance for the second quarter of 2002, and it was reducing its earnings guidance for fiscal year 2002. Furthermore, the Company stated that it now expected to have a loss from operations of $1.8 million to $2.1 million for the quarter. In response to this announcement, the price of Tripos common stock dropped precipitously, falling from $21.80 per share to $8.53 per share - a drop of 60% - on extremely heavy trading volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/cgi/signup.cgi.
If you are a member of the class described above, you may, not later than September 22, 2003, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca