Wednesday April 16 1:25 PM EDT
Barrack, Rodos & Bacine files suit against Informix Corp.
and certain officers and directors alleging material
misstatements and false financial statements
PHILADELPHIA--(BUSINESS WIRE)--April 16, 1997--A class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of Informix Corp. ("Informix") common stock during the period Aug. 16, 1996 through March 31, 1997 ("Class Period").
Plaintiffs allege that Informix' management in violation of Section 10(b) of the Securities Exchange Act of 1934 made material misrepresentations about the company's business and earnings growth and manipulated Informix' financial results by recognizing revenue from software licenses during 1996 in violation of Generally Accepted Accounting Principles, all of which resulted in the company reporting
inflated and deceptive earnings.
In fact, Informix was experiencing significant problems with its operations and product development. These problems forced Informix to change its distribution method which resulted in significant cancellations and returns of licenses in early 1997.
The complaint alleges that certain Informix senior executives took advantage of the inflated price of Informix stock caused by the misrepresentations by selling almost a million shares of the company's
stock for more than $22 million.
When news regarding the company's problems and diminished revenues and profits were made public, the company's stock price fell to as low as $7.00.
The plaintiffs seek to recover damages on behalf of all purchasers of Informix stock during the Class Period. They are represented by, among other firms, Barrack, Rodos & Bacine, who has extensive experience and expertise in prosecuting investor class actions.
Barrack, Rodos & Bacine has prosecuted securities, antitrust and consumer class actions for over 20 years from offices in Philadelphia, San Diego, New York and New Jersey.
The Barrack Rodos firm is nationally recognized, having been designated lead counsel by federal and state courts across the country in large, complex cases and recovering hundreds of millions of dollars for class members.
Most significantly, Barrack Rodos is acknowledged as an outstanding trial firm, having most recently won a multi-million dollar verdict in Gutierrez v. Givens, a consumer class action, tried by the firm on
behalf of 29,000 California residents.
If you are a member of the Class described above, you may, no later than June 13, 1997, 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 case or your rights or interests, please contact the shareholder relations manager at Barrack, Rodos & Bacine, 3300 Two Commerce
Square, 2001 Market St., Philadelphia, PA 19103, at 800/417-7305 or 215/963-0600.
CONTACT: Barrack, Rodos & Bacine
800/417-7305 or 215/963-0600
fax: 888/417-7306 or 215/963-0838 |
