Forwarded FYI. It will be interesting to see how this plays out.
Chris
-----Original Message-----
From: Equity Alert Center [mailto:[EMAIL PROTECTED]]
Sent: Monday, September 25, 2000 3:35 PM
To: Chris Montgomery
Subject: Your News Alert for ALLR
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As requested, your News Alert for ALLR
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<advert deleted>
Milberg Weiss Announces Class Action Suit Against Allaire Corporation
NEW YORK, Sep 25, 2000 (BUSINESS WIRE) -- The law firm of Milberg Weiss
Bershad
Hynes & Lerach LLP announces that a class action lawsuit was filed on
September
25, 2000, on behalf of purchasers of the securities of Allaire
Corporation
("Allaire " or the "Company") (NASDAQ:ALLR) between July 20, 2000 and
September
18, 2000, inclusive.
A copy of the complaint filed in this action is available from the
Court, or can
be viewed on Milberg Weiss' website at: http://www.milberg.com/allaire/
The action is pending in the United States District Court for the
District of
Massachusetts against defendants Allaire, Joseph J. Allaire, Jeremy
Allaire,
David A. Gerth and David J. Orfao.
Defendant Allaire is a Delaware corporation with its principal executive
offices
located at 275 Grove Street, Newton, Massachusetts. The Company
describes itself
as a leading provider of Internet software products and services for
companies
building their businesses on the Web. ColdFusion, the Company's flagship
product, is a Web application server, i.e. a software program that
functions as
an infrastructure to host Web applications and enables access to these
applications through Web browsers, client hardware and other
applications. In
December 1999, the Company announced the general availability of Allaire
Spectra, a packaged system for content management, e-commerce and
personalization that sits on top of the infrastructure and allows
companies to
build e-commerce Web sites. The Company also sells and supports Jrun, to
meet
the needs of more advanced systems programmers, and Homesite, a
Web-editing tool
for HTML language.
The complaint alleges that, throughout the Class Period, defendants
portrayed
the Company as being "uniquely positioned" as a high volume seller due
to "a
pricing model and a distribution model that supported a volume market",
and that
defendants claimed that the Company would achieve a market share
leadership
position in each market it competed in. The complaint further alleges
that the
Company promised "consistent strong sequential growth" for the "next two
or
three years." When in early September 2000 it appeared that
third-quarter
earnings were not keeping apace with defendants' projections, defendants
claimed
this was only because the quarter was "back end loaded," i.e., because a
disproportionate percentage of sales would occur in the latter part of
the
quarter and that the Company was otherwise on track to meet projected
earnings
and revenues. In fact, defendants knew or recklessly disregarded that,
in its
attempt to capture a broad customer base, the Company had spread itself
too thin
and consequently, lacked the resources to develop and market its core
infrastructure product, ColdFusion, while simultaneously developing a
market
presence for its newer products, Spectra and Jrun.
Meanwhile, between August 2, 2000 and August 29, 2000, Company insiders
sold
407,000 shares of Allaire stock at artificially inflated prices for
proceeds of
$13.3 million. Only after they thus cashed out a substantial portion of
their
investment in the Company did defendants reveal, on September 18, 2000,
that
they expected Allaire to post a third-quarter net loss in the range of
$(0.05)
to $(0.20) per share. This was well below analysts' third quarter
consensus
estimate of $0.07 per share, and well below both the net income of $0.06
per
share the Company reported in the second quarter of 2000 and the $(0.01)
net
loss it reported in the third quarter of 1999.
On news of the Company's announcement, the Company's shares plunged to
close at
$10.4375 on September 18, 2000, down 40% from the previous close of
$17.50 on
September 15, 2000.
If you bought the securities of Allaire between July 20, 2000 and
September 18,
2000, you may, no later than November 24, 2000, 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 Milberg Weiss Bershad Hynes & Lerach LLP,
or
other counsel of your choice, to serve as your counsel in this action.
Milberg Weiss Bershad Hynes & Lerach LLP (http://www.milberg.com) is a
160-lawyer firm with offices in New York City, San Diego, San Francisco,
Los
Angeles, Boca Raton and Seattle and is active in major litigations
pending in
federal and state courts throughout the United States. Milberg Weiss has
taken a
leading role in many important actions on behalf of defrauded investors,
consumers, and others, and has been responsible for more than $20
billion in
aggregate recoveries. Please contact the Milberg Weiss website for more
information about the firm. If you wish to discuss this action with us,
or have
any questions concerning this notice or your rights and interests with
regard to
the case, please contact the following attorneys:
Steven G. Schulman or Samuel H. Rudman One Pennsylvania Plaza, 49th fl.
New
York, NY, 10119-0165
Phone number: (800) 320-5081 Email: [EMAIL PROTECTED] Website:
http://www.milberg.com
CONTACT: Milberg Weiss Bershad Hynes & Lerach LLP, New York
Steven G. Schulman or Samuel H. Rudman
800/320-5081
[EMAIL PROTECTED]
Website: http://www.milberg.com
TICKERS: NASDAQ:ALLR
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Copyright (C) 2000 Business Wire. All rights reserved.
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KEYWORD: NEW YORK MASSACHUSETTS
INDUSTRY KEYWORD: LEGAL/LAW
CLASS
ACTION
LAWSUITS
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