| Company: | Red Hat, Inc. |
| Ticker Symbol: | NASD: RHAT |
| Class Period: | June 19, 2001 to July 12, 2004 |
| Date Filed: | Jul-16-04 |
| Lead Plaintiff Deadline: | Sep-13-04 |
| Court: | Easthern District, NC |
| Allegations: |
A lawsuit seeking class action status has been filed in the United States District Court for the Eastern District of North Carolina on behalf of all persons who purchased the publicly traded securities of Red Hat (Nasdaq: RHAT - News; "Red Hat") between June 19, 2001 and July 12, 2004, inclusive (the "Class Period").
The Complaint alleges that Red Hat and certain of its officers and directors issued materially false statements. Specifically, defendants: (i) improperly and prematurely recognized revenue from subscriptions in violation of Generally Accepted Accounting Principles ("GAAP"); (ii) falsely reported in quarterly and year end SEC filings that Red Hat recognized revenue from subscriptions "ratably"; (iii) misrepresented Red Hat's net income and financial results; and (iv) sold over $79 million worth of personally held stock at artificially inflated prices.
On July 13, 2004, Red Hat revealed that it would restate financial results for fiscal years 2002, 2003, 2004 and the first quarter of 2004 as a result of a change in the way that the company recognized revenue from subscriptions, noting that Red Hat would now be recognizing subscription revenue on a daily basis rather than on a monthly basis. Defendants admitted that the restatement, "is expected to result in significant percentage differences in certain items such as quarterly operating profit and net income." Red Hat also announced that the Securities and Exchange Commission ("SEC") had made an inquiry into the Company's results for one year, though the basis for the inquiry has not yet been fully disclosed. On this news, Red Hat plummeted $4.62 or 22.7% to close at $15.73 per share.
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 alleges that Red Hat and certain of its officers and directors issued materially false statements. Specifically, defendants: (i) improperly and prematurely recognized revenue from subscriptions in violation of Generally Accepted Accounting Principles ("GAAP"); (ii) falsely reported in quarterly and year end SEC filings that Red Hat recognized revenue from subscriptions "ratably"; (iii) misrepresented Red Hat's net income and financial results; and (iv) sold over $79 million worth of personally held stock at artificially inflated prices.
On July 13, 2004, Red Hat revealed that it would restate financial results for fiscal years 2002, 2003, 2004 and the first quarter of 2004 as a result of a change in the way that the company recognized revenue from subscriptions, noting that Red Hat would now be recognizing subscription revenue on a daily basis rather than on a monthly basis. Defendants admitted that the restatement, "is expected to result in significant percentage differences in certain items such as quarterly operating profit and net income." Red Hat also announced that the Securities and Exchange Commission ("SEC") had made an inquiry into the Company's results for one year, though the basis for the inquiry has not yet been fully disclosed. On this news, Red Hat plummeted $4.62 or 22.7% to close at $15.73 per share.
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.
