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Technology Stocks : AremisSoft Corporation (AREM) -- Ignore unavailable to you. Want to Upgrade?

To: Bob Rudd who wrote (382)	6/12/2001 4:39:35 PM
From: Sir Auric Goldfinger	Read Replies (1) \| Respond to of 683

AremisSoft Corp. Sued by Holder Over Bulgarian Health Contract Wilmington, Delaware, June 12 (Bloomberg) -- Some directors of business software maker AremisSoft Corp. were accused of selling company shares at an inflated price after misstating future revenue from a Bulgarian contract. In a lawsuit filed in Delaware Chancery Court, stock owner Thomas Malagisi says New York-based AremisSoft wrongly claimed in late 1999 that it had received a $37.5 million contract to provide software for Bulgaria's national public health system. The announcement had a ``significant long-range effect'' on the company's price, and executives sold more than 10 million shares before the New York Times suggested last month that the contract was actually worth much less, Malagisi says in the suit filed Friday. The nine current and former directors ``knew that the Bulgarian contract was worth one-tenth as much as the company had disclosed,'' and ``the market price of AremisSoft's shares would decline'' once that information became public, the suit claims. The shares reached a 52-week high of $28.25 in mid-January but have fallen below $20. Malagisi asks a judge to create a trust fund on behalf of the company to hold profits gained by directors who sold shares and to award damages and legal fees. Class-action lawsuits have also been filed in federal court in New Jersey on behalf of investors who bought AremisSoft shares since December 1999 and lost money. Officials of AremisSoft, which makes software for the hospitality, health-care, construction and manufacturing industries, wouldn't immediately comment on the Delaware suit. The company in May said the allegations are ``frivolous'' and that independent Bulgarian lawyers agreed with AremisSoft's estimate of the contract's size. Shares of AremisSoft, which has 1,300 employees and reported $123.6 million in fiscal 2000 sales in 20 countries, rose 27 cents to $13.17. --Phil Milford in Wilmington, Delaware (302) 984-3373 or pmilford@bloomberg.net, through the Washington newsroom (202) 624- 1917 /ta Story illustration: To chart AremisSoft sales and earnings per share, see: {AREM US <Equity> DES5 <GO>} . Company news: