Stockholders v Quovadx, Inc.
Quovadx Accused of Prematurely Recognizing Revenue and Failing to Disclose
Several class actions have been filed against software company Quovadx, Inc. (Nasdaq:QVDX) and certain of its officers and directors by stockholders who purchased the company's common stock between October 22, 2003, and March 15, 2004. The actions claim that the defendants iolated 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 issued statements which failed to disclose that the company had materially overstated its net income and earnings per share, and that the defendants prematurely recognized revenue from contracts with Infotech Network Group. It is possible that, after investigation, the class period may be expanded back to October 22, 2002.
On March 15, 2004, Quovadx announced that it would: (1) delay the filing of its annual report on form 10-K for the year ended December 31, 2003; (2) restate its third quarter 2003 financial results; and (3) revise its previously announced fourth quarter and full year financial results. In response to this announcement, Quovadx shares fell $1.45 per share, losing approximately 28.8% of their value. The Securities and Exchange Commission has opened an investigation into the restatement as well as other issues.
f you purchased any shares of Quovadx stock during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by May 17, 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 plaintiff. 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.
