DALLAS, Nov. 17 2004 – LAWFUEL – Law, legal, class action news – The law firm of Baron + Budd, P.C. announces that it has filed a class action lawsuit in the United States District Court for the Northern District of Texas on behalf of purchasers of Sourcecorp, Inc. (NASDAQ:SRCP) ("Sourcecorp" or the "Company") securities during the period between May 7, 2003 and October 27, 2004, inclusive (the "Class Period"). Additional defendants are Company President and CEO Ed. H. Bowman, Jr. and Company Executive VP and CFO Barry Edwards.
The complaint alleges that throughout the Class Period, Sourcecorp, Bowman and Edwards violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the Complaint alleges that the Defendants failed to disclose and misrepresented the following material adverse facts which were known to them or recklessly disregarded by them: (1) that the Company had materially overstated its net income and earnings per share; (2) that defendants prematurely recognized revenue in its Information Management and Distribution Division; (3) that the Companys financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (4) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (5) that as a result, the value of the Companys net income and financial results were materially overstated at all relevant times
On October 27, 2004, the Company announced its need to restate its previously certified financial results. As a result of the restatement, the Company will have to adjust its revenues and diluted EPS for 2003 by at least $5.4 million or $0.19 per share. For the six months ending June 30, 2004, the adjustment may amount to $2.8 million or $0.10 per share. Immediately following this announcement, Sourcecorps stock fell $5.95 per share, or almost 30%, on unusually high trading volume of 833,200 shares, from its closing price of $22.21 on October 26, 2004, to a closing price of $16.25 on October 27, 2004.
If you acquired the securities of Sourcecorp during the Class Period and sustained damages, you may, no later than December 31, 2004, move for appointment of lead plaintiff on behalf of the proposed class. In order to serve as a lead plaintiff you must meet certain legal requirements. If you are a member of this class and would like to view a copy of the complaint and join this class action, please visit Baron & Budd online. Information on your legal rights can be obtained by contacting the law firm of Baron & Budd, P.C.
About Baron & Budd, P.C.
Since 1977, the law firm of Baron & Budd, P.C. has championed the rights of people and communities harmed by corporate misconduct. With over 70 attorneys and offices in Texas, Illinois, Ohio, Louisiana, and New York, Baron & Budd enjoys a national reputation as a leader of the plaintiffs' bar. The firm represents individuals with mesothelioma and other diseases caused by asbestos; leukemia caused by benzene; injuries caused by other toxic substances and unsafe pharmaceuticals; water authorities seeking clean-up costs for drinking water contamination; securities investors defrauded by corporate wrongdoing; and consumers in class actions. For more information on the firm, call 1-800-222-2766 or visit http://www.baronandbudd.com/ .
CONTACT: BARON & BUDD, P.C.
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