| Company: | Citadel Security Software, Inc. |
| Ticker Symbol: | NASD: CDSS |
| Class Period: | February 12, 2004 to December 16, 2004 |
| Date Filed: | Jan-14-05 |
| Lead Plaintiff Deadline: | Mar-15-05 |
| Court: | Northern District, TX |
| Allegations: |
A class action lawsuit was filed in the United States District Court for the Northern District of Texas on behalf of all securities purchasers of Citadel Security Software, Inc. ("Citadel Security" or the "Company") from February 12, 2004 through December 16, 2004 inclusive (the "Class Period").
The complaint charges Citadel Security, Steven B. Solomon, and Richard Connelly with violations of the Securities Exchange Act of 1934. Citadel Security Software Inc. develops and markets computer security and privacy software. Its information technology ("IT") security computer software products include security and management solutions for networks and personal workstations designed to secure and manage personal computers and local area networks. According to the complaint, the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that customer demand in the commercial portion of the Company's business was slowing; (2) that the much touted, sizable pipeline of potential contracts failed to materialize due to poor management execution; (3) that as a consequence of the above the Company's growth was lagging; and (4) therefore, the defendants' statements about the Company were lacking in any reasonable basis when made. Additionally, the complaint alleges that during the Class Period, defendants sold a total of 754,500 shares for proceeds totaling more than $3 million.
On December 17, 2004, Citadel Security provided a financial update for its year-ended December 31, 2004. More specifically, the Company stated that based upon preliminary estimates, Citadel now expects its revenue for the full year 2004 to be between $15.2 million and $16.0 million, compared to previous guidance of full-year revenue of $18.5 million to $21 million. As a result, the Company will not meet its previously released net income guidance for the second half of 2004 which was for net income of $1.0 million to $2.0 million. The Company expects to end 2004 with approximately $4.9 million of deferred revenues, most of which will be earned in 2005.
News of this shocked the market. Shares of Citadel Security fell $1.80 per share, or 41.96 percent, to close at $2.49 per share on unusually high trading volume.
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.
The complaint charges Citadel Security, Steven B. Solomon, and Richard Connelly with violations of the Securities Exchange Act of 1934. Citadel Security Software Inc. develops and markets computer security and privacy software. Its information technology ("IT") security computer software products include security and management solutions for networks and personal workstations designed to secure and manage personal computers and local area networks. According to the complaint, the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that customer demand in the commercial portion of the Company's business was slowing; (2) that the much touted, sizable pipeline of potential contracts failed to materialize due to poor management execution; (3) that as a consequence of the above the Company's growth was lagging; and (4) therefore, the defendants' statements about the Company were lacking in any reasonable basis when made. Additionally, the complaint alleges that during the Class Period, defendants sold a total of 754,500 shares for proceeds totaling more than $3 million.
On December 17, 2004, Citadel Security provided a financial update for its year-ended December 31, 2004. More specifically, the Company stated that based upon preliminary estimates, Citadel now expects its revenue for the full year 2004 to be between $15.2 million and $16.0 million, compared to previous guidance of full-year revenue of $18.5 million to $21 million. As a result, the Company will not meet its previously released net income guidance for the second half of 2004 which was for net income of $1.0 million to $2.0 million. The Company expects to end 2004 with approximately $4.9 million of deferred revenues, most of which will be earned in 2005.
News of this shocked the market. Shares of Citadel Security fell $1.80 per share, or 41.96 percent, to close at $2.49 per share on unusually high trading volume.
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.
