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Case ID: 3581 | Stocks | 07/27/2004
Several class actions have been filed against software company The Reynolds & Reynolds Company (NYSE:REY) and certain of its officers and directors by stockholders who purchased the company's common stock between January 22, 2003, and June 24, 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 complaint alleges that Reynolds failed to disclose or misrepresented the following material adverse facts: (1) that the company knew or recklessly disregarded the fact that market demand for its cutting edge products, such as Reynolds Generation Series, was lackluster; (2) that as a consequence, its strategy for growth was seriously flawed – it was forced to expend additional resources to pitch new products to unwilling customers, while neglecting the marketing for its more conventional revenue-producing products; and (3) that, as a result, the defendants lacked a reasonable basis for their positive statements about the company and its earnings projections. On June 24, 2004, Reynolds announced that its anticipated revenues and earnings would be lower than previous estimates when the company reported results for its third fiscal quarter on July 21, 2004. On this news, shares of Reynolds fell $7.28 per share or 23.81%, on June 25, 2004, to close at $23.30 per share. On July 7, 2004, Reynolds announced that CEO, Chairman and President Lloyd "Buzz" Waterhouse had resigned from the company and its board of directors, effective immediately. On this news, shares of Reynolds plummeted further. Shares of Reynolds fell a further $.83 per share or 3.63%, on July 7, 2004, to close at $22.12 per share. If you purchased securities issued by Reynolds & Reynolds during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by September 21, 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 you in this action, or you may choose to do nothing, and remain in the class as a silent member. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Stocks Cases of Interest A class action has been filed against Herley Industries, Inc. (HRLY), certain of its officers and directors by stockholders who purchased the company's common stock between October 1, 2001 and June 14, 2006. The action claims 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. A class action has been filed against Navarre Corp. (NasdaqNM:NAVR), certain of its officers and directors by stockholders who purchased the company's common stock between July 23, 2003 and May 31, 2005. The action claims 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. According to a press release from Signalife, Inc., the defendant has launched a countersuit against plaintiff firm Vianale & Vianale LLP and twelve large brokerage houses seeking injunctive relief against naked short-selling and market manipulation. As the release states, "The Securities and Exchange Commission has released data that the April selling of Signalife securities was not "a sell off" (as claimed by certain of the defendants) but a planned naked bear attack determined to coincide with a web cast at which the bona fides of the device were not discussed at all. In addition to the alleged unlawful taking of stock of Signalife's corporate treasury in connection with naked shorting, the illegal actions have also resulted in injuries caused to persons who have not been given access to the Companies' revolutionary technologies as a consequence of the adverse impact on the company resulting from those actions.
The parties have reached a tentative $1 million settlement in a class action filed against Cheap Tickets, Inc., on behalf of stockholders who held the company's common stock between August 13, 2001, and October 5, 2001. The action claimed that the defendants violated federal securities laws by breaching their fiduciary duties to shareholders in connection with the sale of Cheap Tickets to Cendant Corporation. Persons eligible to take part in the action must submit claim forms postmarked by July 30, 2004, to receive a share of the settlement. A class action has been filed against Shurgard Storage Centers, Inc. (NYSE:SHU), certain of its officers and directors by stockholders who purchased the company's common stock between May 09, 2001 and March 26, 2004. The action claims 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 parties have reached a $10 million settlement in an SEC enforcement action filed against Gemstar-TV Guide International, Inc., (Nasdaq:GMST) on behalf of stockholders who purchased the company's common stock between 1999 and 2002. The action claims 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. Persons eligible to take part in the settlement should contact the attorneys who prosecuted the action for more information. |
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