NEW YORK, Dec. 3, 2003 (PRIMEZONE) -- The law firm of Kirby McInerney & Squire, LLP announces that a class action lawsuit has been commenced in the United States District Court for the Northern District of California, on behalf of all purchasers of Portal Software, Inc. ("Portal" or the "Company") (Nasdaq:PRSF) securities during the period from May 20, 2003 through November 13, 2003, inclusive (the "Class Period").
Please visit our website, which offers summary and detailed information concerning the suit at http://www.kmslaw.com/new_cases/Portal/Portal.htm or contact us by phone at (888) 529-4787 or by email at emui@kmslaw.com for more information.
The action charges Portal and certain of its senior officers ("Defendants"') with violations of Sections 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. The alleged violations stem from the Defendants' dissemination of false and misleading statements, which had the effect - during the Class Period - of artificially inflating the price of Portal's shares.
Defendants issued a series of material misrepresentations to the market between May 20, 2003 and November 13, 2003, thereby artificially inflating the price of Portal Software common stock. Defendants also issued numerous public statements concerning Portal's revenue growth, product and marketing initiatives, and increasing revenues and profits, while failing to disclose that demand for the Company's products was materially declining. Prior to disclosure of this adverse information to the market, the Company completed a public offering of Portal common stock, raising over $56 million in net proceeds, and certain executives sold their personally-held Portal common stock to the unsuspecting public, reaping proceeds of more than $4.8 million.
On November 13, 2003, Portal issued a press release announcing earnings expectations $0.32 - 0.36 below previous guidance of $0.04 per share. Market reaction to the belated disclosures was swift and severe. In after-hours trading on November 13, 2003, the price of Portal common shares fell more than 42.5% to open at $8.77 per share on November 14, 2003, and have decreased more than 51% from a Class Period high of $17.93 per share reached less than a month before on October 15, 2003.
If you are a member of the class described above, you may, no later than January 19, 2004, 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, you can contact: Pamela E. Kulsrud, Esq., Elaine Mui.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.