LITTLE ROCK, Ark., May 7, 2001 (PRIMEZONE) -- The deadline for purchasers of Nuance Communications Inc. ("Nuance" or the "Company") (Nasdaq:NUAN) common stock to move for lead plaintiff in a securities fraud class action recently brought against the Company is rapidly approaching. If you purchased Nuance common stock between January 31, 2001 and March 15, 2001, inclusive (the "Class Period"), and you wish to be a lead plaintiff in the case, you must move to serve as lead plaintiff by filing a motion in the United States District Court for the Northern District of California by May 21, 2001.
The complaint, filed by a client of the Law Firm of Cauley Geller Bowman & Coates, LLP, alleges that the Company and certain of its officers and directors violated the federal securities laws by providing materially false and misleading information about the Company's financial condition and future growth potential, and as a result of these false and misleading statements the Company's stock traded at artificially inflated prices during the class period. Nuance develops, markets, and supports a voice-recognition software platform that purportedly makes the information and services of enterprises, telecommunications networks, and the Internet accessible from any telephone. The complaint alleges that after exceeding analysts' earnings expectations for its fourth quarter and reporting "record revenue," defendants reaffirmed Nuance's leadership position in the voice-recognition market and the continued revenue growth experienced since the end of the fourth quarter. Thereafter, the Individual Defendants, contrary to their unwavering public support for the Company's prospects and its stock, sold vast quantities of their holdings in Nuance stock.
Just weeks after defendants finished selling their own Nuance stock, they revealed that the Company's revenue growth had in fact ceased, and that revenues for the quarter would be well below those reported for the prior quarter. Commenting on the disappointing news, defendants stated: "Nuance attributes the revenue shortfall primarily to general economic conditions, which have led customers and customer prospects to postpone capital investment in Nuance products and service offerings based on Nuance products. The company believes its visibility is limited for both the second quarter and full-year results." Immediately following defendants' March 15, 2001 disclosures, the price of Nuance stock dropped, falling from its closing price of $17 per share March 15, 2001 to $9.68 per share at the close on March 16, 2001, a drop of more than 40%.
If you bought the common stock of Nuance between January 31, 2001 and March 15, 2001, inclusive, you may, no later than May 21, 2001 request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Cauley Geller Bowman & Coates, LLP, or other counsel of your choice, to serve as your counsel in this action.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents shareholders from throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at www.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP Client Relations Department: Sue Null, Charlie Gastineau or Jackie Addison P.O. Box 25438 Little Rock, AR 72221-5438 Toll Free: 1-888-551-9944 E-mail: info@classlawyer.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca