Class action suit filed against Symantec Corporation and its officers and directors alleging misrepresentations, false financial statements and insider trading.
The amended complaint charges that during the Class Period, defendants engaged in a fraudulent scheme, conspiracy and course of business that operated as a fraud or deceit on all persons who purchased or otherwise acquired Symantec stock. Defendants' false and misleading statements were made in or disseminated from California to the general public. As set forth hereafter, these false and misleading statements included statements about (1) Symantec's new Windows 95-related utility software products known as Norton Navigator, Norton AntiVirus and Norton Utilities; (2) Symantec's Enterprise products; (3) Symantec's sales in Europe; and (4) other aspects of Symantec's business. Furthermore, Symantec's financial statements for its first and second quarters of fiscal 1996 (ended June 30 and September 29, 1995) were false and misleading in violation of Generally Accepted Accounting Principles. These false and misleading statements drove Symantec's stock to a Class Period high of $33-1/4 and enabled (i) Symantec to complete in November 1995 a large acquisition of another software company, Delrina Inc. for 15 million shares of Symantec stock; and (ii) Symantec's insiders to sell 392,902 shares of their Symantec stock at artificially inflated prices as high as $32 per share, realizing almost $12 million for themselves, before it was exposed that European sales were weak, sales of Symantec's Windows 95 utility software and Enterprise products were very poor and that, due to huge product returns, Symantec would suffer flat revenue growth in its third quarter of fiscal 1996 (ended December 31, 1995), resulting in a loss, causing its stock to collapse from $22-1/2 to $10-1/8 per share, in just four trading days, on huge volume of 27 million shares -- over 67% of Symantec's public float.
Plaintiffs who have sued seek to recover damages on behalf of all purchasers of Symantec common stock during the Class Period. They are represented by two law firms, Milberg Weiss Bershad Hynes & Lerach LLP and Kaplan, Kilsheimer & Fox, 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 20 years. The firm has offices in New York, San Diego, San Francisco and Los Angeles and is active in major litigations 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 discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffs' counsel, William Lerach of Milberg Weiss at 800/348-6192 or Robert N. Kaplan of Kaplan Kilsheimer at 800/290-1952.
CONTACT: Milberg Weiss
William Lerach, 800/348-6192
Robert N. Kaplan, 800/290-1952
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|Date:||Aug 14, 1996|
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