| Company: | Checkfree Corp. |
| Ticker Symbol: | NASD: CKFR |
| Class Period: | April 26, 2006 to August 1, 2006 |
| Date Filed: | Apr-10-07 |
| Lead Plaintiff Deadline: | Jun-08-07 |
| Court: | Northern District, GA |
| Allegations: |
A class action has been filed against Checkfree Corp. ("Checkfree" or the "Company") (Nasdaq:CKFR) and certain of its officers and directors in the U.S. District Court for the Northern District of Georgia. The action is on behalf of Checkfree publicly traded securities purchasers during the period April 26, 2006 and August 1, 2006 inclusive (the "Class Period"), for violations of the Securities Exchange Act of 1934. The complaint alleges that defendants made false and misleading statements and material omissions regarding the Company's business and operations and that, as a result, the price of the Company's securities was inflated during the Class Period, thereby harming investors.
According to the complaint, during the Class Period, defendants made false and misleading statements and omissions regarding the Company's business, accounting practices and financial results. As early as April of 2006, Defendants issued objectively unreasonable guidance regarding the purported sustainability of month-over-month growth in their electronic commerce business, which included the projection of "25% annual transaction growth for the foreseeable future." Upon these false and misleading representations, stock analysts raised Checkfree's target price, as well as FY 2006 and 2007 EPS estimates, while issuing favorable "Buy" and "Outperform" ratings.
On August 1, 2006, Defendants shocked the market with their disclosure of laggard fourth-quarter revenues, including a 2% decline in the Company's Payment Services division. As a result of disclosure of the corrective disclosure of the laggard nature of the Company's consumer transactions growth, the price of Checkfree shares plummeted $5.93 or 15.9%, to close on August 2, 2006 at $37.20, on extremely heavy volume of over 17.2 million shares.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
According to the complaint, during the Class Period, defendants made false and misleading statements and omissions regarding the Company's business, accounting practices and financial results. As early as April of 2006, Defendants issued objectively unreasonable guidance regarding the purported sustainability of month-over-month growth in their electronic commerce business, which included the projection of "25% annual transaction growth for the foreseeable future." Upon these false and misleading representations, stock analysts raised Checkfree's target price, as well as FY 2006 and 2007 EPS estimates, while issuing favorable "Buy" and "Outperform" ratings.
On August 1, 2006, Defendants shocked the market with their disclosure of laggard fourth-quarter revenues, including a 2% decline in the Company's Payment Services division. As a result of disclosure of the corrective disclosure of the laggard nature of the Company's consumer transactions growth, the price of Checkfree shares plummeted $5.93 or 15.9%, to close on August 2, 2006 at $37.20, on extremely heavy volume of over 17.2 million shares.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
