| Company: | Digimarc Corporation |
| Ticker Symbol: | NASD: DMRC |
| Class Period: | April 17, 2002 to July 28, 2004 |
| Date Filed: | Sep-29-04 |
| Lead Plaintiff Deadline: | Nov-29-04 |
| Court: | District, OR |
| Allegations: |
A class action lawsuit on behalf of purchasers of Digimarc Corporation ("Digimarc" or the "Company") securities (NASDAQ: DMRC) between April 17, 2002 and July 28, 2004 inclusive, (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act").
The action is pending in the United States District Court of Oregon against defendants Digimarc Corp., Bruce Davis (Chairman of the Board of Directors and CEO) and E.K. Ranjit (Former CFO).
The complaint alleges that throughout the Class Period, Defendants issued, or caused to be issued, false and misleading statements in violation of Sections 10(b) and 20(a) of the Exchange Act, in order to artificially inflate the value of Digimarc stock while they sold millions of dollars of their personal holdings for tremendous personal gain. Under the direction of CFO E.K. Ranjit, the Company inflated its profitability during the class period by maintaining insufficient accounting controls which created the environment where improper accounting could be used to manipulate Company financial results. The Company now admits that it improperly accounted for software development costs and project capitalization at its Digimarc ID Systems business unit. In order to correct the misleading financial statements previously issued, the Company has indicated that it will need to restate all its financial reports for 2003 and 2004, and may also be required to restate earlier periods as well. Without the improper accounting manipulations, the restatement of which the Company indicates will be in the millions of dollars, the Company may not have been able to meet analysts' earnings per share estimates during the class period. In addition, while the accounting manipulations were ongoing, Company insiders sold over $10 million of Digimarc stock. When the Company substantially missed its earnings expectations on July 28, 2004, Digimarc's stock plummeted on usually high trading volume of 653,600 shares, from its closing price of $12.07 on July 28, 2004, to a closing price of $9.04 on July 29, 2004.
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 action is pending in the United States District Court of Oregon against defendants Digimarc Corp., Bruce Davis (Chairman of the Board of Directors and CEO) and E.K. Ranjit (Former CFO).
The complaint alleges that throughout the Class Period, Defendants issued, or caused to be issued, false and misleading statements in violation of Sections 10(b) and 20(a) of the Exchange Act, in order to artificially inflate the value of Digimarc stock while they sold millions of dollars of their personal holdings for tremendous personal gain. Under the direction of CFO E.K. Ranjit, the Company inflated its profitability during the class period by maintaining insufficient accounting controls which created the environment where improper accounting could be used to manipulate Company financial results. The Company now admits that it improperly accounted for software development costs and project capitalization at its Digimarc ID Systems business unit. In order to correct the misleading financial statements previously issued, the Company has indicated that it will need to restate all its financial reports for 2003 and 2004, and may also be required to restate earlier periods as well. Without the improper accounting manipulations, the restatement of which the Company indicates will be in the millions of dollars, the Company may not have been able to meet analysts' earnings per share estimates during the class period. In addition, while the accounting manipulations were ongoing, Company insiders sold over $10 million of Digimarc stock. When the Company substantially missed its earnings expectations on July 28, 2004, Digimarc's stock plummeted on usually high trading volume of 653,600 shares, from its closing price of $12.07 on July 28, 2004, to a closing price of $9.04 on July 29, 2004.
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.
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
If your injustice does not match the complaint described above, please use this form to register your complaint. Thank you.
