Several class actions have been filed against software company BEA Systems, Inc., (Nasdaq:BEAS) and certain of its officers and directors by stockholders who purchased the company's common stock between November 13, 2003, and May 13, 2004. The actions claim that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.

The action alleges that the defendants concealed the following adverse facts from the investing public: (1) that BEA was experiencing material sales execution problems in its licensing division, resulting in license reserve being down from expected levels; (2) that during the preceding quarter, its sales staff and management’s attempts to reorganize had disrupted sales significantly; (3) that the company’s WebLogic 8.1 Platform was far from “revolutionary” and was not selling as the defendants had claimed; (4) that North American reserves were disrupted when the coverage of small and medium-sized businesses was transferred to the General Accounts Team; and (5) that the company was experiencing weakness in its telecom vertical business, so that it was not the strength that company officials represented.

As a result of these allegedly false statements, BEA’s stock price traded at inflated levels during the class period, increasing to as high as $14 in early 2004-- it was at this point that the company’s top officers and directors allegedly sold more than $13 million worth of their own shares. Then on May 13, 2004, BEA reported disappointing first quarter results, citing the difficult selling environment and sales execution issues as the primary reasons. On this news, BEA shares fell 30% to $8 per share.

If you purchased securities issued by BEA Systems during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by August 9, 2004. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that your claim is typical of the claims of other class members, and that you will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiffs. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. You may retain any counsel of your choice to serve as you in this action, or you may choose to do nothing, and remain in the class as a silent member.