PHILADELPHIA, Feb. 3, 2003 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Northern District of California, on behalf of all persons and entities who purchased the common stock of Veritas Software Corporation (Nasdaq:VRTS) ("VERITAS" or the "Company") between January 24, 2001 and January 16, 2003, inclusive (the "Class Period").
The action, numbered 03-CV-0408, is pending in the United States District Court, Northern District of California, located at Burton United States Courthouse, 450 Golden Gate Avenue, San Francisco, CA against defendants Veritas, Gary L. Bloom, Kenneth E. Lonchar, and Paul A. Sallaberry. The Honorable Maxine M. Chesney is presiding over the case. A copy of the Complaint is available from the Court or the Law Offices Bernard M. Gross, P.C. Please contact us by phone at 866-561-3600 (toll free) or by E-mail at susang@bernardmgross.com.
The Complaint charges Veritas, Gary L. Bloom, President and Chief Executive Officer, Kenneth E. Lonchar, Chief Financial Officer and Executive Vice President, and Paul A. Sallaberry, Executive Vice President Worldwide Field Operations with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5, by issuing a series of materially false and misleading statements to the market during the Class Period. Specifically, as alleged in the Complaint, on January 17, 2003, the Company announced the restatement of its 2000 and 2001 financial statements as a result of its improper accounting for transactions with AOL Time Warner ("AOL") in 2000. The release stated in part: "(t)he transactions involved in a $50 million software purchase by AOL and a $20 million advertising services purchase from AOL." While VERITAS' financial statements were admittedly false and its stock price artificially inflated, the Company's top officers and directors took advantage of this and sold nearly $15 million worth of their VERITAS shares to the unsuspecting public. Then, in October 2002, it was discovered that Lonchar has lied about his background in that he claimed to have received an MBA from Stanford University. When it was discovered that this was not true, Lonchar resigned. Bloom was quoted as stating: "While Ken's misstatements about his academic credential is unfortunate, it has no bearing on the accuracy of our financial results." Then, January 17, 2003, VERITAS admitted that in fact its financial statements had been inaccurate and announced they would be restated to eliminate $17 million in revenue and $7 million in net income previously reported for the fourth quarter of 2000.
Plaintiff seeks to recover damages on behalf of Class members and is represented by the law firm of Law Offices Bernard M. Gross, P.C. which has significant experience and expertise in prosecuting class actions.
If you bought the securities of VERITAS between January 24, 2001 and January 17, 2003 you may, no later than March 22, 2003, 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 rights or interests with respect to these matters,
PLEASE CONTACT: Law Offices Bernard M. Gross, P.C.
Deborah R. Gross, Esquire
Susan R. Gross, Esquire
1515 Locust Street, Second Floor
Philadelphia, PA 19102
Telephone: 866-561-3600 (toll-free)
or 215-561-3600
E-mail: susang@bernardmgross.com or
debbie@bernardmgross.com
Website: http://www.bernardmgross.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca