VoyForums
[ Show ]
Support VoyForums
[ Shrink ]
VoyForums Announcement: Programming and providing support for this service has been a labor of love since 1997. We are one of the few services online who values our users' privacy, and have never sold your information. We have even fought hard to defend your privacy in legal cases; however, we've done it with almost no financial support -- paying out of pocket to continue providing the service. Due to the issues imposed on us by advertisers, we also stopped hosting most ads on the forums many years ago. We hope you appreciate our efforts.

Show your support by donating any amount. (Note: We are still technically a for-profit company, so your contribution is not tax-deductible.) PayPal Acct: Feedback:

Donate to VoyForums (PayPal):

[ Login ] [ Contact Forum Admin ] [ Main index ] [ Post a new message ] [ Search | Check update time | Archives: 1, 2, 3, [4] ]

[ Next Thread | Previous Thread | Next Message | Previous Message ]

Date Posted: 16:34:46 12/21/99 Tue
Author: warren
Subject: Re: Bad news for VRTY investors...
In reply to: Patty 's message, "Re: Bad news for VRTY investors..." on 15:23:10 12/21/99 Tue

> > Tuesday December 21, 2:33 pm Eastern Time
> >
> > Company Press Release
> >
> > Milberg Weiss Files Class Action Suit Against Verity,
> > Inc. and Certain of Its Officers and Directors
> Alleging
> > Misrepresentations
> >
> > SAN DIEGO--(BUSINESS WIRE)--Dec. 21, 1999--Milberg
> > Weiss (http://www.milberg.com)
> > today announced that a class action has been
> commenced
> > in the United States District Court for the Northern
> > District of
> > California on behalf of purchasers of Verity, Inc.
> > (``Verity'') (Nasdaq:VRTY - news) securities during
> > the period between
> > December 1, 1999 and December 14, 1999 (the ``Class
> > Period'').
> >
> > The complaint charges Verity and certain of its
> > officers and directors with violations of the federal
> > securities laws by making
> > misrepresentations about Verity's business and
> > earnings growth and its ability to continue to
> achieve
> > profitable growth. During
> > October 1999 and November 1999, Verity saw its stock
> > price soar from around $30 per share to nearly $60
> per
> > share as Verity
> > reported better-than-expected 1stQ F00 results and
> > hyped its expanding product line and strong order
> > pipeline. (All share and
> > per-share amounts are adjusted to reflect Verity's
> > two-for-one stock split paid on December 3, 1999.)
> > Based on Verity
> > management's statements, analysts projected revenues
> > of more than $21 million and EPS of $0.06 for 2ndQ
> > F00, ending
> > November 30, 1999. By the end of the 2ndQ F00,
> > however, Verity had been unable to close three major
> > sales which translated
> > into a minimum $5 million shortfall. Notwithstanding
> > Verity's past practice of preannouncing earnings
> > shortfalls, Verity said nothing
> > about this problem and, on the contrary, Verity
> > management confirmed with market participants on
> > December 1, 1999 that
> > business continued to be strong and the pipeline
> > remained as strong as ever. These false statements
> > stemmed the decline in
> > Verity's stock price, which between November 29, 1999
> > and December 1, 1999 had declined from $59-9/16 to
> > $46-23/32, and
> > caused the stock to trade in the $50 - $56 range
> > during the following two weeks. On December 14, 1999,
> > Verity's stock price
> > dropped more than $5 per share on heavy volume of 1.6
> > million shares on seemingly no news. Then, after the
> > markets closed,
> > Verity announced a devastating revenue and earnings
> > shortfall, reporting revenues of $16.7 million and
> EPS
> > of $0.45 per share
> > which the Company attributed to the failure to close
> > three large deals. On a subsequent conference call,
> > Verity management
> > admitted they had not disclosed the shortfall sooner
> > in hopes of being able to announce that some of the
> > deals had closed in
> > December 1999 in order to stave off total devastation
> > of its stock price. As a result of these disclosures,
> > on December 15, 1999,
> > Verity's stock price utterly collapsed, falling by
> 46%
> > to as low as $24-7/8 on enormous volume of 22.2
> > million shares.
> >
> > Plaintiff seeks to recover damages on behalf of all
> > purchasers of Verity securities during the Class
> > Period (the ``Class''). Plaintiff
> > is represented by several law firms, including
> Milberg
> > Weiss Bershad Hynes & Lerach LLP, who have expertise
> > in prosecuting
> > investor class actions and extensive experience in
> > actions involving financial fraud.
> >
> > Milberg Weiss has been actively engaged in commercial
> > litigation, emphasizing securities and antitrust
> class
> > actions, for more than
> > 30 years. The firm has offices in New York, San
> Diego,
> > San Francisco, Los Angeles and Boca Raton and is
> > active in major
> > litigation pending in federal and state courts
> > throughout the United States. The firm's reputation
> > for excellence has been
> > recognized on repeated occasions by courts which have
> > appointed the firm to major positions in complex
> > multi-district or
> > consolidated litigations. Milberg Weiss has taken a
> > lead role in numerous important actions on behalf of
> > defrauded investors, and
> > has been responsible for a number of outstanding
> > recoveries which, in the aggregate, total
> > approximately $2 billion.
> >
> > If you wish to serve as lead plaintiff, you must move
> > the Court no later than 60 days from today. If you
> > wish to discuss this action
> > or have any questions concerning this notice or your
> > rights or interests, please contact plaintiff's
> > counsel, William Lerach or
> > Darren Robbins of Milberg Weiss at 800/449-4900 or
> via
> > e-mail at wsl@mwbhl.com.
>
> This is the reason I never bottom fish on companies
> that disappoint. Same story with XRX, WMI (Waste
> Management) There are countless stories like this.

Verity's stock was cut in half because the company failed to close 3 major deals.But since then,2 of the 3 have been inked.Had the stock holders waited,I don't think there would've been a lawsuit.I believe VRTY's mishap is a blessing for new investors.The company will right themselves and continue to beat earnings estimates next quarter.

[ Next Thread | Previous Thread | Next Message | Previous Message ]
[ Contact Forum Admin ]

Forum timezone: GMT-8
VF Version: 3.00b, ConfDB:
Before posting please read our privacy policy.
VoyForums(tm) is a Free Service from Voyager Info-Systems.
Copyright © 1998-2019 Voyager Info-Systems. All Rights Reserved.