LOS ANGELES, May 16, 2006 (PRIMEZONE) -- Yourman Alexander & Parekh LLP, a law firm with extensive experience in prosecuting claims for securities and consumer fraud, announces that a lawsuit seeking class action status has been filed on behalf of shareholders who purchased or otherwise acquired the securities of Astea International Inc. ("Astea" or the "Company") (Nasdaq:ATEA) during the period May 11, 2005, through March 31, 2006, inclusive (the "Class Period"). The matter is pending in the United States District Court for the Eastern District of Pennsylvania.
The complaint alleges in part that defendants violated federal securities laws by failing to present the true financial condition of Astea. It is further alleged that defendants committed these violations by issuing false and misleading statements to the investing community concerning the Company's financial condition, and that by omitting to disclose the truth about Astea's financial performance during the Class Period, defendants artificially inflated the price of the Company's securities for their own personal gain. It is also alleged that defendants failed to accurately account for the Company's software development costs in violation of Generally Accepted Accounting Principles ("GAAP") and that as a result, the Company overstated its earnings which lead to the restatement of its financials for the quarter ending September 30, 2005, and two previous quarters. The complaint also alleges that as a result of the foregoing, the Company's stock fell 30% in a single day, from $16.50 to $11.73 per share.
Since a class has not yet been certified, you are not represented by counsel in this matter. If a person or institution purchased or acquired Astea securities from May 11, 2005, through March 31, 2006, inclusive, and suffered a loss, the deadline to move for appointment as Lead Plaintiff is June 5, 2006. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The securities laws require the Court to consider the class member(s) with the largest financial interest, i.e. the largest financial loss, as presumptively the most adequate Lead Plaintiff(s). In order to serve as a Lead Plaintiff, you must meet certain legal requirements. While your ability to share in any recovery is not affected by your decision of whether or not to seek appointment as a Lead Plaintiff, Lead Plaintiffs are responsible for making important decisions which could affect the overall recovery for class members, including decisions concerning settlement. If you are only concerned with your ability to participate as a class member, you do not need to take any action at this time.
If you: (i) wish to discuss this action, have information concerning this case, or acquired shares through your Astea retirement account; (ii) have questions concerning this Notice or your rights or interests with respect to this litigation; or (iii) have any other potential matters that you would care to discuss, please contact Vahn Alexander of Yourman Alexander & Parekh LLP, 3601 Aviation Blvd., Suite 3000, Manhattan Beach, California 90266 by telephone, toll-free at (800) 725-6020, or by email to valexander@yaplaw.com. There will be no obligation or cost to you concerning your inquiry. For more information please visit www.yaplaw.com.