NEW YORK, Jan. 8, 2004 (PRIMEZONE) -- Wolf Popper LLP has filed a securities fraud class action complaint against Network Engines, Inc. (Nasdaq:NENG), its chairman, and certain of its senior officers on behalf of purchasers of Network Engines common stock from November 6, 2003 through December 10, 2003, inclusive (the "Class Period"). A copy of the complaint is available from the U.S. District Court for the District of Massachusetts, and on Wolf Popper's website (www.wolfpopper.com).
Plaintiff alleges, inter alia, that by November 6, 2003, the defendants were aware but did not disclose that Network Engines was negotiating amendments to its distribution agreement with EMC Corporation ("EMC"), and that in connection with those negotiations EMC was demanding price reductions which would negatively effect Network Engines' future financial results and performance. Despite this knowledge, defendants made positive representations emphasizing the company's strong financial performance, continued growth and purportedly successful relationship with EMC, its largest customer.
The true facts were revealed on December 10, 2003, when the Company announced, inter alia, that it had renegotiated the EMC distribution agreement and that, as amended, the agreement would have a negative effect on Network Engines' gross profits.
The market reacted negatively to this disclosure. The market price of Network Engines shares fell $3.92, or 39%, from the closing price of $10.02 per share on the previous day, to close on December 10 at $6.10 per share, on extremely high trading volume. The Company's share price has fallen even further since that time.
Wolf Popper has extensive experience representing shareholders in class actions and has successfully recovered billions of dollars for defrauded investors and shareholders. The reputation and expertise of the firm in shareholder and other class action litigation has been repeatedly recognized by the courts, which have appointed the firm to major positions in complex multi-district and consolidated litigations.
Any member of the class (who purchased Network Engines stock during the period November 6, 2003 through December 10, 2003, inclusive) who desires to be appointed lead plaintiff in the class action must file a motion with the Court no later than February 17, 2004. Class members must meet certain legal requirements to serve as a lead plaintiff. If you have questions or information regarding this action, or if you are interested in serving as a lead plaintiff, you may call or write:
Wolf Popper LLP, Robert C. Finkel, Esq. 845 Third Avenue, New York, NY 10022-6689
Tel.: 212.451.9620, Toll Free: 877.370.7703; Fax: 212.486.2093, Toll Free: 877.370.7704 Email: irrep@wolfpopper.com; website: www.wolfpopper.com
For more information on this and other class action lawsuits visit the Class Action Newsline at www.primezone.com/ca