NEW YORK, July 26, 2002 (PRIMEZONE) -- Please take notice that the law firm of Kirby McInerney & Squire, LLP has commenced a class action lawsuit in the United States District Court for the Central District of California, Western Division, on behalf of all purchasers of SeeBeyond Technology Corp. common stock (Nasdaq:SBYN) during the period from April 23, 2001 through April 22, 2002 (the "Class Period"). The action seeks to recover losses suffered by such investors.
A copy of the complaint is available from the Court or from Kirby McInerney & Squire. Please visit our website, which offers summary and detailed information concerning the case at www.kmslaw.com/new_cases/seebeyond/seebeyond.htm , or contact us by phone at (888) 529-4787 or by email at obraun@kmslaw.com .
The complaint asserts claims for violation of Section 10(b) and 20(a) of the Securities and Exchange Act of 1934 against SeeBeyond, its Chief Executive Officer and its Chief Financial Officer. The alleged violations, according to the complaint, stem from materially false and misleading statements issued by the defendants during the Class Period that: (i) misrepresented to the public SeeBeyond's financial results (which, during the class period, were inflated through premature recognition of revenue); thereby (ii) causing SeeBeyond stock to trade at artificially-inflated prices.
The complaint alleges that, in order to ensure the success of a secondary stock offering in which SeeBeyond and its CEO raised tens of millions of dollars, SeeBeyond announced -- just prior to the offering -- fourth quarter financial results inflated by "pulling in" revenue from future quarters and reporting it as having been earned in the fourth quarter of 2001. As detailed in the complaint, this allowed SeeBeyond to report revenues that met financial guidance, and allowed the offering to proceed on terms more advantageous to SeeBeyond and its CEO. On April 2, 2002, SeeBeyond announced financial results for its first quarter of 2002. As SeeBeyond would only admit 3 weeks later, these results included approximately $2.2 million of revenues that had been pulled in from the future quarter (which allowed SeeBeyond to report revenue figures that approximated its financial guidance). Unbeknownst to the public until April 23, 2002 (and as SeeBeyond executives later admitted in a May 7, 2002 Wall Street Journal article), SeeBeyond's auditors contacted SeeBeyond on April 2, 2002 to inform that the financial results -- as stated on April 2, 2002 -- were incorrect and misleading. No public mention of this was made. On April 22, 2002, SeeBeyond announced first quarter financial results from which this $2.2 million had disappeared. This sudden shortfall, which altered SeeBeyond's other financial metrics and results for the worse as well, caused SeeBeyond stock to lose 50% of its value on April 23, 2002, when it closed at slightly above $3 per share.
Plaintiffs are represented by Kirby McInerney & Squire, LLP, which specializes in complex litigation, including securities class actions. 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 its 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 plaintiff in a securities class action can be obtained through Kirby McInerney & Squire's website at www.kmslaw.com.
If you are a member of the class described above, you may, no later than September 2, 2002, move the Court to serve as lead plaintiff of the class, if you so choose, pursuant to the Private Securities Litigation Reform Act of 1995 (the "PSLRA"), 15 U.S.C. section 78u-4(a). A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. 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 seek appointment as a lead plaintiff. For more information about the case, its claims, and your rights, please contact:
Ira M. Press, Esq. Ori Braun KIRBY McINERNEY & SQUIRE, LLP 830 Third Avenue, 10th Floor New York, New York 10022 Telephone: (212) 317-2300 or Toll Free (888) 529-4787 E-Mail: obraun@kmslaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.