BOSTON, March 18, 2005 (PRIMEZONE) -- - An investor has sued Viisage Technology, Inc. ("Viisage" or the "Company") (Nasdaq:VISG), claiming that the Company misled investors about its finances.
Berman DeValerio Pease Tabacco Burt & Pucillo (www.bermanesq.com) filed the class action on March 16, 2005 in the U.S. District Court for the District of Massachusetts. The lawsuit seeks damages for violations of federal securities laws on behalf of all investors who bought Viisage publicly traded securities during the period of July 22, 2004 through and including March 2, 2005 (the "Class Period").
To receive a copy of the complaint, you may contact the court, call the firm at (800) 516-9926 or go to http://www.bermanesq.com/pdf/Viisage-Cplt.pdf.
The lawsuit claims that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder, including U.S. Securities and Exchange Commission ("SEC") Rule 10b-5.
According to the complaint, Viisage portrayed itself during the Class Period as a turn around company in the high growth sector of secure identity solutions. In reality however, (i) Viisage engaged in improper conduct with respect to a $20 million contract; (ii) the Company improperly inflated its reported revenues in the third and fourth quarters of 2004; and (iii) Viisage's internal accounting controls were so flawed that the Company qualified as a having "material weakness" under the accounting standards set by the Public Company Accounting Oversight Board.
As a result of misleading financial statements issued during the Class Period, the Company's stock soared to $9.64 per share on December 23, 2004, up from $6.95 per share on July 22, 2004, a 38.7% increase in just six months.
Then, on February 7, 2005, Viisage announced that the Company would not meet its previously issued earnings guidance for 2004. In addition, rather than report a $1.5 loss as previously projected, Viisage anticipated a loss of approximately $7-8 million.
The market's reaction was immediate. On February 8, 2005, Viisage's shares plunged as much as 24.3% -- from $7.27 to a low of $5.85.
On March 2, 2005, Viisage again shocked the market by announcing that the Company's auditor would "issue an adverse opinion with respect to the effectiveness of the Company's internal controls over financial reporting." In addition, Viisage announced that revenues for the first quarter 2005 would be between $15-$17 million -- well below expectations of $19.7-$21 million.
On this news, Viisage's shares plunged as much as 27.2% on March 3, 2005 to a low of $4.30 - down from the close of $5.47 the previous day.
If you purchased Viisage publicly traded securities from July 22, 2004 through and including March 2, 2005 you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
Jeffrey C. Block, Esq. Leslie R. Stern, Esq. One Liberty Square Boston, MA 02109 (800) 516-9926 law@bermanesq.com
If you wish to apply to be lead plaintiff in this action, a motion on your behalf must be filed with the court no later than May 9, 2005. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action, or you may submit information online at http://www.bermanesq.com/Securities/Signup1.asp?caseid=537. Please note, you may also retain counsel of your choice and need not take any action at this time to be a class member.
Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations, and consumer fraud.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca