Mercury Interactive Securities Fall as SEC Inquiry Begins: Scott+Scott, LLC Updates Shareholder Lawsuit
Formal SEC Investigation Underway / Shares Fall $5.36 (14.53%) Per Share
SAN DIEGO, CA, October 5, 2005
— Scott + Scott, LLC (http://www.scott-scott.com), which filed the first securities fraud action against Mercury Interactive Corporation (“Mercury” or the “Company”) (Nasdaq: MERQE) and individual defendants on August 21, 2005, represents shareholders in the United States District Court for the Northern District of California (5:05-cv-03395-JF). Purchasers of securities in Mercury during the class period from October 22, 2003 through August 23, 2005 inclusive (the “Class Period”) are members of the putative class. This case is also brought on behalf of those purchasing notes convertible to shares of Company stock, pursuant to the Company’s Zero Coupon Senior Convertible Notes (due 2008 offering). Mercury, an enterprise software company, provides software and services to the business technology optimization marketplace. Any shareholder of Mercury may contact the firm.
If you wish to discuss this action or have questions concerning your rights as a class member, please contact Scott+Scott for more information. Scott+Scott will provide you with case materials, answer all questions regarding your participation and rights and assist you with other services the firm provides. There is no cost or fee to you. Contact Scott+Scott partner Neil Rothstein at ([email protected], 800/332-2259, ext. 22 or cell 619/251-0887).
The complaint alleges that unbeknownst to investors, defendants’ internal controls and corporate compliance during the Class Period were flawed and deficient, causing their stock to trade at artificially inflated levels. Specifically, the complaint alleges that defendants concealed extraordinary auditing expenses in connection with the “highly likely” need to restate earnings for multiple quarters and years. For more information on these allegation, see Scott+Scott’s August 31, 2005 press release (http://biz.yahoo.com/prnews/050831/new032.html?.v=17).
This morning, Mercury announced that an informal inquiry from the Securities and Exchange Commission (“SEC”) has become a formal investigation. Yesterday, Mercury further announced that it expects third-quarter revenue to fall short of its previous target. Mercury stock fell during trading to a 52-week low of $31.54
The plaintiff is represented by Scott+Scott, LLC, which has expertise 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. Current cases the firm is litigating and/or investigating include: Boston Scientific; DHB Industries; Halliburton; Diebold; Human Genome Sciences; Lexmark International Inc., and more.