| Company: | SupportSoft, Inc. |
| Ticker Symbol: | NASD: SPRT |
| Class Period: | January 20, 2004 to October 1, 2004 |
| Date Filed: | Dec-15-04 |
| Lead Plaintiff Deadline: | Feb-07-05 |
| Court: | Northern District, CA |
| Allegations: |
A class action lawsuit was filed in the United States District Court for the Northern District of California on behalf of all securities purchasers of SupportSoft, Inc. (NASD: SPRT) between January 20, 2004 and October 1, 2004, inclusive (the Class Period).
The complaint charges SupportSoft, Radha R. Basu, and Brian M. Beattie with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company failed to close two $4.5 million transactions, due to major flaws in SupportSoft's internal controls; (2) that the Company was experiencing sales execution issues; (3) that SupportSoft's product pipeline was heavily weighted toward perpetual deals; (4) that due to the saturation of the domestic broadband market, the Company was facing a more challenging software spending environment of authorization signatures and longer sales cycles; and (5) that as a result of the above, the defendants' fiscal 2004 projections were lacking in any reasonable basis when made.
On October 4, 2004, SupportSoft announced preliminary financial results for the quarter ended September 30, 2004. The Company expected total revenues for the third quarter 2004 to be in the range of $11.9 million to $12.3 million versus $13.5 million for the same period last year. GAAP loss per share was expected to be in the range of $0.01 to $0.04, this was well below expectations. News of this shocked the market. Shares of SupportSoft fell $3.41 per share, or 35.45 percent, to close at $6.21 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 charges SupportSoft, Radha R. Basu, and Brian M. Beattie with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company failed to close two $4.5 million transactions, due to major flaws in SupportSoft's internal controls; (2) that the Company was experiencing sales execution issues; (3) that SupportSoft's product pipeline was heavily weighted toward perpetual deals; (4) that due to the saturation of the domestic broadband market, the Company was facing a more challenging software spending environment of authorization signatures and longer sales cycles; and (5) that as a result of the above, the defendants' fiscal 2004 projections were lacking in any reasonable basis when made.
On October 4, 2004, SupportSoft announced preliminary financial results for the quarter ended September 30, 2004. The Company expected total revenues for the third quarter 2004 to be in the range of $11.9 million to $12.3 million versus $13.5 million for the same period last year. GAAP loss per share was expected to be in the range of $0.01 to $0.04, this was well below expectations. News of this shocked the market. Shares of SupportSoft fell $3.41 per share, or 35.45 percent, to close at $6.21 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.
Register your Case
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.
