BALA CYNWYD, Pa., Jan. 11, 2002 (PRIMEZONE) -- A shareholder class action lawsuit now pending in federal court in New York (01-CV-10745) charges Quest Software, Inc. (Nasdaq:QSFT) with violations of Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 and Section 10(b) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder, according to the law firm of Schiffrin & Barroway, LLP.
The complaint seeks damages for violations of the federal securities laws on behalf of all investors who purchased Quest Software, Inc. securities between August 13, 1999 and December 6, 2000 (the "Class Period").
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 of Quest Software, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at www.sbclasslaw.com.
The complaint alleges that the California-based Quest Software, Inc. commenced an initial public offering of 4,400,000 of its shares of common stock at an offering price of $14 per share (the "Quest IPO"). In connection therewith, Quest filed a registration statement, which incorporated a prospectus (the "Prospectus"), with the SEC. The complaint further alleges that the Prospectus was materially false and misleading because it failed to disclose, among other things, that: (i) the Underwriters had solicited and received excessive and undisclosed commissions from certain investors in exchange for which the Underwriters allocated to those investors material portions of the restricted number of Quest shares issued in connection with the Quest IPO; and (ii) the Underwriters had entered into agreements with customers whereby the Underwriters agreed to allocate Quest shares to those customers in the Quest IPO in exchange for which the customers agreed to purchase additional Quest shares in the aftermarket at pre-determined prices.
If you purchased Quest Software, Inc. securities during the period of August 13, 1999 and December 6, 2000, you may be a member of the class and have until January 28, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.