OT--Seattle--(Lawsuit) Complaint Charges BMC with Violationsgreenspun.com : LUSENET : TB2K spinoff uncensored : One Thread
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SEATTLE, Mar 9, 2000 (BUSINESS WIRE) -- The following Notice is issued by the law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C., on behalf of its client, who filed a lawsuit in the United States District Court for the Southern District of Texas on behalf of purchasers of BMC Software, Inc. ("BMC") (Nasdaq:BMCS) common stock during the period between July 29, 1999 and Jan. 4, 2000 (the "Class Period").
The complaint charges BMC and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that defendants' false and misleading statements about strong sales of BMC's existing software products, the successful integration of its acquisitions of Boole & Babbage and New Dimension Software earlier in 1999, strong demand for its mainframe MIPS software, notwithstanding a slowdown in sales of IBM mainframe computers, and the lack of customer deferrals of orders or purchases due to Y2K concerns, which would result in 25%-30% EPS growth for BMC during F00-F01 and 3rd and 4thQ F00 EPS of $.52-$.55 and $.58-$.64, respectively, artificially inflated its stock to a Class Period high of $86-5/8 on Jan. 3, 2000. During the Class Period, BMC insiders and controlling shareholders sold 1,085,015 shares of their BMC stock at as high as $78.83 for $63.1 million in proceeds.
On Jan. 5, 2000, just two days after BMC's stock hit its all-time high, BMC revealed that, due to problems integrating the BMC, Boole & Babbage and New Dimension sales forces, sales execution procedures in Europe and the U.S., and weakness in demand for mainframe MIPS software products, its 3rdQ F00 results would be much worse than earlier forecast. BMC's stock fell from $85-1/8 on Jan. 4, 2000 to $47, an almost 50% drop in one day, and when BMC reported 3rdQ F00 EPS of just $.41, a decline from its 2ndQ F00 EPS and its year-earlier 3rdQ F99 EPS, its stock continued to fall to just $36.
Plaintiff's counsel in this action -- Cohen, Milstein, Hausfeld & Toll, P.L.L.C. ( www.cmht.com) -- has significant experience in prosecuting investor class actions and actions involving financial fraud. The firm has offices in Washington D.C. and Seattle and is active in major litigation pending in federal and state courts throughout the nation.
The firm's reputation for excellence has been recognized on repeated occasion by courts, which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total hundreds of millions of dollars.
If you are a member of the Class who purchased BMCS stock during the Class Period, you may move the Court, no later than 60 days from Feb. 4, 2000, to serve as lead plaintiff for the Class. In order to serve as lead plaintiff, you must meet certain legal standards.
If you have any questions about this Notice or the action, or with regard to your rights, please contact one of the following attorneys: Julie Goldsmith (email@example.com) or Clarence D. Williams (firstname.lastname@example.org) of Cohen, Milstein, Hausfeld & Toll, P.L.L.C., 999 Third Avenue, Seattle, Washington 98104. PH.: 888/240-1238 or 206/521-0080.
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-- (Dee360Degree@aol.com), March 10, 2000