BALA CYNWYD, Pa., Oct. 22, 2001 (PRIMEZONE) -- Schiffrin & Barroway, LLP announced today that it recently filed lawsuits on behalf of shareholders of Onyx Software Corp., Art Technology Group, Clarent Corp., and Internet Security Systems, Inc. for violations of the federal securities laws.
If you purchased the securities of any of the companies listed below during the respective class periods, you may be a member of the class and have until the date specified to move the court to become the lead plaintiff. For more information on a particular lawsuit and to view the complaint, you may visit our Website at www.sbclasslaw.com. To learn more about your rights and interests in these cases and your ability to potentially recoup your losses, please contact Schiffrin & Barroway directly at (888) 299-7706 (toll free) or (610) 822-2221, fax number (610) 822-0002 or by e-mail at info@sbclasslaw.com.
ONYX SOFTWARE CORP. (Nasdaq:ONXS) (Class Period: 01/10/01 - 08/10/01). The complaint charges Onyx and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Onyx is a supplier of customer-relationship management enterprise applications that are designed to connect a company's sales, marketing and service organizations with customers, prospects and partners. On January 19, 2001, Onyx announced the acquisition of Revenue Lab and, after the close of the market, hosted a conference call to discuss the acquisition and the Company's business and prospects. Later, Onyx reported favorable, but false, financial results. The complaint alleges that during the Class Period, Onyx made misleading statements about its business and issued false and misleading financial results, causing its stock to be artificially inflated. As a result of this inflation, Onyx was able to complete a secondary offering of 2.5 million shares at $13.50 per share, raising net proceeds of $31.5 million on Feb. 7, 2001.
Then, on April 3, 2001, just weeks after this offering was completed, Onyx revealed that its 1stQ01 results would be sharply lower than the market had been led to expect with revenues of only $26-$27 million and a large loss. The stock dropped below $3 per share on this news. Later, on Aug. 10, 2001, after the market closed, defendants revealed that Onyx's 4thQ00 results had been materially misstated and would have to be restated. After this announcement, Onyx's stock price dropped to as low as $3.70 on Aug. 13, 2001 compared to the Class Period high of $17.25. The complaint was filed in the U.S. District Court for the District of Washington. The lead plaintiff motion must be filed no later than October 29, 2001.
ART TECHNOLOGY GROUP, INC. (Nasdaq:ARTG) (Class Period: 01/25/01 - 04/02/01). The complaint charges Art Technology Group and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that the Company publicly represented, in press releases and public interviews, that it was not subject to the negative trends in the software industry which were affecting the Company's competitors and that its strong revenue growth was not, and would not be, materially affected by the downturn in the technology sector. It is alleged that these statements were knowingly false and misleading because many Art Technology Group clients were technology companies that were negatively impacted by the widespread decrease in technology spending which was underway before the Class Period began, and that many of these customers could not afford to pay the Company for its products. On April 2, 2001, Art Technology Group issued a press release announcing that it will incur a loss of between $0.19 to $0.22 per share for the quarter ending March 30, 2001, which was well below expectations. In response to this announcement, Art Technology Group's stock price dropped to $5.3125, or 55%, from the prior day's close of $12 per share, on extremely heavy trading volume. Prior to the disclosure of the true facts about Art Technology Group's business, Art Technology Group insiders sold a total of over $8.7 million of their personally held Art Technology Group stock. The complaint was filed in the U.S. District Court for the District of Massachusetts. The lead plaintiff motion must be filed no later than October 30, 2001.
CLARENT CORP. (Nasdaq:CLRN) (Class Period: 04/20/01 - 09/04/01). The complaint charges Clarent and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that on Sept. 4, 2001, Clarent announced in a press release that it had discovered information suggesting that its previously reported revenues for the first and second quarters of fiscal 2001 may have been materially overstated, and that the Company's Board of Directors was forming a special committee to investigate a number of transactions that placed in question the Company's historical financial results. The Company also stated that its first quarter 2001 revenues, as released on April 19, 2001, and its second quarter 2001 revenues, as released on July 19, 2001, will be reduced and the related net losses will increase upon conclusion of the review. In addition, the Company anticipates that its revenues for the second half of fiscal 2001 and for fiscal 2002 will be substantially below previously anticipated levels, and that the related losses will be significantly larger than expected. The Company also announced that several of its officers had been placed on administrative leave. On this news trading halted at $5.37. The complaint was filed in the U.S. District Court for the Northern District of California. The lead plaintiff motion must be filed no later than November 4, 2001.
INTERNET SECURITY SYSTEMS, INC. (Nasdaq:ISSX) (Class Period: 04/01/01 - 07/02/01). The complaint charges ISSX and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that on April 18, 2001, ISSX reported its 23rd consecutive quarter of growth. For the first quarter of 2001, it claimed revenues in excess of $61 million and net income of $6.5 million or $0.15 per share. ISSX claimed that the Company's "financial performance continued to show strength and our solid execution and focus on expense control enabled us to meet our profit guidance provided at the beginning of the quarter." ISSX claimed on April 18, 2001 that its guidance for the second quarter ending June 30, 2001 was to produce revenues between $64 and $67 million and earnings in the range of $0.15 per diluted share, even though defendants knew they could not achieve these numbers. ISSX claimed in its April 18, 2001 press release that "the public can continue to rely on the expectations published in its earnings release and Website as being its current expectations on matters covered, unless ISSX publishes a notice stating otherwise." Defendants, who were in control of ISSX during the class period, knew that their business was slowing down, because they received financial reports on a frequent basis, and knew that they had too many employees in view of the slowdown.
On July 2, 2001, after the quarter had ended, ISSX issued a press release in which it stated that ISSX's management expected revenues in the range of $50-52 million, not $64-67 million, and a loss per diluted share between $0.00 to $0.02, rather than earnings of $0.15 to $0.16. Just after the July 18, 2001 press conference in which ISSX released its actual numbers, and admitted that it had over-hired and over indulged on fringe benefits, travel and entertainment, ISSX laid off 12% of its work force, confirming what its executives had known or recklessly disregarded throughout the Class Period, that it had too many employees and greater expenses than it could afford, given its level of sales. Class members who had bought ISSX shares during the Class Period (when ISSX told them they could rely on its guidance) found out on the morning of July 3, 2001 that ISSX had tumbled more than 40 percent. The complaint was filed in the U.S. District Court for the Northern District of Georgia. The lead plaintiff motion must be filed no later than November 28, 2001.
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors.
If you are a shareholder in any of the companies listed above and would like to be a lead plaintiff in one of these securities class actions, please contact Schiffrin & Barroway at (888) 299-7706.
More information on these and other class actions can be found on the Class Action Newsline at www.primezone.com/ca