COLCHESTER, Conn., April 12, 2007 LAWFUEL – Class Actions Newswire — In a release issued earlier, the Class Period should have been April 4, 2006 to August 1, 2006, inclusive, rather than April 26, 2006 as originally issued. The corrected version follows.
On April 10, 2007, Scott+Scott, LLP, filed a class action against CheckFree Corp. (“CheckFree” or the “Company”) (Nasdaq:CKFR) and certain of its officers and directors in the U.S. District Court for the Northern District of Georgia. The action is on behalf of CheckFree publicly traded securities purchasers during the period April 4, 2006 and August 1, 2006 inclusive (the “Class Period”), for violations of the Securities Exchange Act of 1934. The complaint alleges that defendants made false and misleading statements and material omissions regarding the Company’s business and operations and that, as a result, the price of the Company’s securities was inflated during the Class Period, thereby harming investors.
If you purchased CheckFree stock during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than 60 days from today. Any member of the investor class may move the Court to serve as lead plaintiff through counsel of its choice, or may choose to do nothing and remain an absent class member.
If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott ([email protected], 800/404-7770, 860/537-5537) or visit the
Scott+Scott website, http://www.scott-scott.com, for more information.
There is no cost or fee to you.
According to the complaint, during the Class Period, defendants made false and misleading statements and omissions regarding the Company’s business, accounting practices and financial results. As early as April of 2006, Defendants issued objectively unreasonable guidance regarding the purported sustainability of month-over-month growth in their electronic commerce business, which included the projection of “25% annual transaction growth for the foreseeable future.” Upon these false and misleading representations, stock analysts raised CheckFree’s target price, as well as FY 2006 and 2007 EPS estimates, while issuing favorable “Buy” and “Outperform” ratings.
On August 1, 2006, Defendants shocked the market with their disclosure of laggard fourth-quarter revenues, including a 2% decline in the Company’s Payment Services division. As a result of disclosure of the corrective disclosure of the laggard nature of the Company’s consumer transactions growth, the price of CheckFree shares plummeted $5.93 or 15.9%, to close on August 2, 2006 at $37.20, on extremely heavy volume of over 17.2 million shares.
The plaintiff is represented by Scott+Scott, a firm with significant experience in prosecuting investor class actions. The firm dedicates itself to client communication and satisfaction and currently is litigating major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities worldwide.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primenewswire.com/ca/