Purchasers 10/21/99 - 1/19/00
On January 19, 2000, Legato Systems, Inc. revealed that it would restate its previously reported financial results for the third fiscal quarter of 1999 at the direction of the company's auditors. The company stated that its auditors had instructed the company not to recognize revenue on the contract in question until the first and second quarters of 2000. Additionally, the auditors challenged revenue recognition on certain contracts proposed by the company to be recognized in the 1999 fourth quarter, instructing the company to defer revenue recognition until 2000. As a result, the company missed its estimated earnings per share for the 1999 fourth quarter by 17 cents per share. The company's stock lost 44.5% of its value in a single day's trading on January 20, 1999, closing at $29-3/4, and dropped further still, in after hours trading. During the period from 10/21/99 - 1/19/00, insiders are alleged to have reaped more than $11.5 million in stock sales at inflated prices.
If you purchased LGTO shares during the period 10/21/99 - 1/19/00, you are alleged to be a member of a class of injured security holders. If you have information which would help us prosecute Legato Systems, Inc., please contact us at mail@schubert-reed.com. If you want more information about the case against Legato Systems, Inc. or class action lawsuits, please review our web site at schubert-reed.com. |
