Scott + Scott, LLC, First To File Mercury Interactive Securities Lawsuit, Will Extend Class Period
Mercury Interactive Securities Fall Again as SEC Formal Inquiry Begins: Scott+Scott, LLC Updates Shareholder Lawsuit
SAN DIEGO, Oct. 6, 2005 — Scott+Scott, LLC (http://www.scott-scott.com), filed the first securities fraud action against Mercury Interactive Corporation (“Mercury” or the “Company”) and individual defendants on August 21, 2005, and represents shareholders in the United States District Court for the Northern District of California (5:05-cv-03395-JF). Purchasers of all Mercury securities during the period from October 22, 2003, through August 23, 2005, inclusive (the “Class Period”) are members of the putative class. The class will be extended to October 4, 2005. As the formal SEC Investigation began as announced on October 4, 2005, shares fell $5.29 (14.31%) per share on over 14 million shares traded on October 5. Mercury, an enterprise software company, provides software and services to the business technology optimization marketplace. Any shareholder of Mercury may contact Scott+Scott. 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). You may also reach Mr. Rothstein or Scott + Scott attorney Erin Green Comite at 800/404-7770 or 860-537-3818 prior to noon on the East Coast
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 this allegation, see Scott+Scott’s August 31, 2005 press release (http://biz.yahoo.com/prnews/050831/new032.html?.v=17).
Yesterday morning, Mercury announced that an informal inquiry from the Securities and Exchange Commission (“SEC”) had 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 to close at $31.61.
Plaintiffs are represented by Scott+Scott, LLC, of which clients in this case include institutional investors, non-profit organizations, individuals and other entities The firm has vast 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; Guidant; DHB Industries; Halliburton; Diebold; Human Genome Sciences; AMERIGROUP Corp.; Immucor, Inc.; and Lexmark International Inc., among others. The firm has offices in Connecticut, Ohio and California.