Class action suit filed against FileNet Corporation and its officers and directors alleging misrepresentations and insider trading.SAN DIEGO--(BUSINESS WIRE)--April 2, 1997--A class action has been commenced in the United States District Court United States District Court In the U.S., any of the 94 trial courts of general jurisdiction in the federal judicial system. Each state, as well as the District of Columbia and the Commonwealth of Puerto Rico, has at least one federal district court. for the Central District of California on behalf of purchasers of FileNet Corporation ("FileNet") common stock during the period October 19, 1995 to July 2, 1996. The complaint charges FileNet and certain of its officers and directors with violations of the federal securities laws. The complaint alleges that during the Class Period, defendants artificially inflated FileNet stock to as high as $67 per share based on representations that FileNet's core business and Watermark watermark: see paper. See digital watermark. and Saros business units were rapidly expanding, and that FileNet was successfully integrating its product lines and sales and support functions to create a single source solution for all of a company's document imaging and management needs. However, just a few months later, FileNet revealed that demand for its Saros products was, in fact, soft and sales of that product line were well below expectations, adversely impacting FileNet's results for the first quarter of 1996. Upon the revelation on April 1, 1996 of the poor results for the first quarter, FileNet's stock immediately collapsed from $57-7/8 to $45-3/4 per share. Defendants nevertheless reassured the market as to the strength of FileNet's core business and Watermark unit until July 2, 1996, when defendants revealed that sales in the second quarter in all of its units were weak, again adversely impacting earnings. FileNet's stock price again plunged, from a closing price of $33 on July 2, 1996 to a closing price of $23-3/4 on July 3, 1996. Before the truth came out, however, defendants sold over 200,000 shares of their FileNet stock at artificially inflated prices as high as $54.50 per share, pocketing over $10.5 million in illegal insider-trading proceeds. FileNet's insiders sold 143,805 shares of their FileNet stock between October 23 and December 8, 1995, at prices as high as $46.25 per share, and 77,761 shares of their FileNet stock between April 22-26, 1996. Several of FileNet's insiders, including FileNet's CFO See Chief Financial Officer. and the senior vice presidents of International and Customer Services and Support, sold over 50% of their FileNet stock! Just after FileNet's insiders had completed their bailout, on July 2, 1996, FileNet shocked the market with the revelations of poor sales across all their product lines, and greatly reduced fiscal year 1996 revenues and earnings expectations. FileNet's stock immediately plunged to as low as $20 per share. Plaintiff seeks to recover damages on behalf of all purchasers of FileNet common stock during the Class Period (the "Class"). He is represented by several law firms This list of the world's largest law firms by revenue is taken from The Lawyer and The American Lawyer and is ordered by 2006 revenue:[1]
Milberg Weiss has been actively engaged in commercial litigation An action brought in court to enforce a particular right. The act or process of bringing a lawsuit in and of itself; a judicial contest; any dispute. When a person begins a civil lawsuit, the person enters into a process called litigation. , emphasizing securities and antitrust class actions, for more than 20 years. The firm has offices in New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. , San Francisco San Francisco (săn frănsĭs`kō), city (1990 pop. 723,959), coextensive with San Francisco co., W Calif., on the tip of a peninsula between the Pacific Ocean and San Francisco Bay, which are connected by the strait known as the Golden and Los Angeles Los Angeles (lôs ăn`jələs, lŏs, ăn`jəlēz'), city (1990 pop. 3,485,398), seat of Los Angeles co., S Calif.; inc. 1850. and is active in major litigation pending in federal and state courts throughout the United States United States, officially United States of America, republic (2005 est. pop. 295,734,000), 3,539,227 sq mi (9,166,598 sq km), North America. The United States is the world's third largest country in population and the fourth largest country in area. . 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. For additional information about Milberg Weiss, see the firm's website at http://www.milberg.com . Burt & Pucillo concentrates its practice in the areas of class action, securities, antitrust and consumer litigation. The firm has played important roles in significant cases both in federal and state courts throughout the United States and is committed to development of the law in a manner that recognizes shareholder rights and true corporate democracy. If you are a member of the Class described above, you may, no later than 60 days from today, move the Court to serve as lead plaintiff of the Class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Jan Adler or Randi Bandman of Milberg Weiss at 800/348-6192 or Michael Pucillo or Wendy Zoberman of Burt & Pucillo at 800/349-4612. CONTACT: Milberg Weiss Jan Adler or Randi Bandman, 800/348-6192 or Burt & Pucillo Michael Pucillo or Wendy Zoberman, 800/349-4612 |
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