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Case ID: 4311 | Stocks | 06/17/2005
A class action has been filed against AuthentiDate Holding Corp. (NasdaqNM:ADAT), certain of its officers and directors by stockholders who purchased the company's common stock between September 29, 2003 and May 27, 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 dated June 4, 2005, the complaint charges AuthentiDate and certain of its officers and directors with violations of the Securities Exchange Act of 1934. AuthentiDate provides web-based content authentication services that address the verification of digital information in all business processes. Specifically, the complaint alleges that during the Class Period, defendants made materially false and misleading statements regarding the Company's business and prospects, specifically about revenues to be derived from an agreement with the U.S. Postal Service. The Company also concealed certain internal control problems. These false statements caused AuthentiDate stock to trade at artificially inflated levels, reaching as high as $18.69 per share in January 2004. Taking advantage of this artificial inflation, AuthentiDate completed a private placement of its stock in February 2004, raising $69 million in net proceeds. AuthentiDate's CFO and former CEO also took advantage of the inflation, selling 156,000 shares of their AuthentiDate stock for proceeds of $1.7 million. On April 13, 2005, AuthentiDate announced the dismissal of its accounting firm PricewaterhouseCoopers LLP. Later, on April 29, 2005, AuthentiDate filed a Form 8-K with the SEC disclosing it had hired a new accounting firm and also that on April 15, 2005, its CFO had sent a letter to certain members of the Company's Board of Directors, advising them of the existence of corporate governance issues. The Company hired special counsel to investigate the letter. Then, the complaint further alleges, on or around May 27, 2005, the Company issued a press release announcing that "its ongoing discussions with the United States Postal Service regarding the status of its Strategic Alliance Agreement had reached a critical stage with the receipt of a second notice from the Postal Service stating that it had failed to attain the performance metrics required by the Strategic Alliance Agreement during the period February 2005 through April 2005." On this news, AuthentiDate's stock collapsed to $2.94 per share on volume of 1.28 million shares. If you bought AuthentiDate Holding Corp. securities between September 29, 2003 and May 27, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. 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A class action has been filed against Hypercom Corporation (NYSE:HYC), and certain of its officers and directors by stockholders who purchased the company's common stock between April 30, 2004 and February 03, 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. |
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