DOYLESTOWN, Pa., Aug. 6, 2004 (PRIMEZONE) -- Hoffman & Edelson, LLC has filed a class action lawsuit in the United States District Court for the Eastern District of North Carolina against Red Hat, Inc. ("Red Hat" or the "Company") (Nasdaq:RHAT), Matthew Szulik, Kevin B. Thompson and Timothy J. Buckley, on behalf of common stock purchasers during the period between June 19, 2001 and July 13, 2004 (the "Class Period"), inclusive.
The Complaint alleges that during the Class Period defendants issued a series of materially false and misleading statements to the market in violation of Sections 10(b) and 20(a) of the Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. More specifically, on July 13, 2004, defendants revealed that they would be restating financial results for fiscal years ended February 2004, 2003 and 2002 as well as its unaudited financial statement for its fiscal first quarter ended May 31, 2004 as a result of the change in the way they recognized revenue from subscription contracts, noting that they would now be recognizing revenue from subscriptions on a daily basis rather than on a monthly basis. The Company further announced that the Securities and Exchange Commission is conducting a review of one of its annual reports. On this news, Red Hat's stock price fell precipitiously from a closing price of $20.35 per share on July 12, 2004 to an intra-day low of $15.62 per share on July 13, 2004.
If you purchased or otherwise acquired the common stock of Red Hat , you may, no later than September 13, 2004 move the Court to appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as lead plaintiff. You may retain Hoffman & Edelson, LLC, or other counsel of your choice, to serve as your counsel in this action.
If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, please contact Jerold B. Hoffman at Hoffman & Edelson, LLC, 45 W. Court Street, Doylestown, PA 18901 at 877-537-6532 (toll free), fax number 215-230-8735 or by e-mail at jhoffman@hofedlaw.com.