ATLANTA – LAWFUEL – The Law Newswire – Chitwood Harley Harnes LLP announced today that it has filed a lawsuit seeking class action status in the United States District Court for the Northern District of Georgia on behalf of all persons (the “Class”) who purchased the securities of CheckFree Corp. (NASDAQ: CKFR) (“CheckFree” or the “Company”) during the period April 4, 2006 through August 1, 2006, inclusive (the “Class Period”). The defendants are CheckFree, Peter J. Kight, who at all relevant times was Chairman of the Board and Chief Executive Officer of the Company, and David Mangum, who at all relevant times was Executive Vice President and Chief Financial Officer of the Company.
A copy of the Complaint will be available on our website, www.chitwoodlaw.com. If you have questions about this case or your rights as a class member or wish to submit your transaction information to our firm, you may contact us through our website by clicking on CheckFree. You may also contact Mary Kathryn King, Esq. directly by emailing her at [email protected] or by calling 1-888-873-3999.
The Complaint charges defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder. The Complaint alleges that during the Class Period, defendants misled investors by issuing false and misleading statements about CheckFree’s operations and financial condition and as a result, the price of CheckFree securities was artificially inflated during the Class Period.
According to the Complaint, on April 4, 2006, an analyst indicated that CheckFree projected a 25% annual transaction growth for the foreseeable future, which led to an 8% increase in the price of CheckFree stock by the end of that day. Throughout the Class Period, defendants continued to make false and misleading statements about CheckFree’s Electronic Commerce and Payment Services businesses in press releases, analyst reports and conference calls. The truth began to emerge in an August 1, 2006, conference call when CheckFree admitted that its financial results for the quarter ended June 30, 2006, were lower than previously expected. After the market learned of the disappointing results, shares of CheckFree plunged $5.93, or 13%, the next day on a volume of 17.3 million shares, the highest daily volume in the more than 10 years that the Company has been publicly traded.
If you purchased CheckFree securities between the period April 4, 2006 and August 1, 2006, you may move the Court to serve as lead plaintiff on behalf of the purported Class. All motions for appointment as lead plaintiff must be filed with the Court no later than June 11, 2007. In order to serve as lead plaintiff, you must meet certain legal requirements, which we would be pleased to discuss with you.
Chitwood Harley Harnes LLP is a law firm that concentrates its nationwide practice in representing victims of securities fraud and corporate mismanagement, as well as other complex litigation, and has been appointed lead counsel in major class actions throughout the United States in both federal and state courts.