MERQE Mercury Interactive (MM)

RADNOR, Pa., Oct. 5 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP: Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Northern District of California on behalf of all securities purchasers of Mercury Interactive Corporation (NASDAQ:MERQE) ("Mercury" or the "Company") from October 22, 2003 through October 4, 2005 inclusive (the "Class Period"). If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll-free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at . The complaint charges Mercury, Amnon Landan, Douglas P. Smith, Anthony Zingale, and Bryan Leblanc with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company lacked adequate internal controls to issue accurate financial reports and projections; (2) that the Company's earnings and retained earnings were materially inflated because Mercury improperly recorded stock-based compensation expenses, which caused the Company's financial results to be presented in violation of Generally Accepted Accounting Principles ("GAAP"); and (3) that as a consequence of the foregoing, the Company's representations to investors and public disclosures lacked in completeness and veracity. Mercury's fraudulent scheme began to unravel on July 5, 2005 when Mercury revealed that a SEC inquiry into the Company's option grants could cause the Company to restate its financial statement. On this news, shares of Mercury fell $0.25 per share to close at $37.96 per share. Following this news, the Company further disclosed, on July 28, 2005, that a restatement would be material and have the effect of decreasing the Company's earnings. On this news, shares of Mercury fell an additional $1.11 per share to close at $39.15 per share. Later, on August 17, 2005, Mercury announced that there was a strong indicator of a "material weakness" in the Company's design and operation of internal control over financial reporting. On this news, shares of Mercury fell $0.28 per share to close at $37.50 per share. Then, on August 29, 2005, Mercury announced that its previously issued financial statements for the fiscal years 2002, 2003 and 2004 should no longer be relied upon and would be restated. Lastly, on October 4, 2005, Mercury announced that the previously disclosed informal inquiry from the SEC had been converted to a formal investigation and that the Company's third quarter 2005 financial results would be below expectations. On this news, shares Mercury fell $5.29 per share, or 14.34 percent, to close at $31.61 per share on unusually high trading volume. Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/. If you are a member of the class described above, you may, not later than October 20, 2005 move the Court to serve as lead plaintiff of the class, if you so choose. 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 Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action. CONTACT: Schiffrin & Barroway, LLP Darren J. Check, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll-free) or 1-610-667-7706 Or by e-mail at DATASOURCE: Schiffrin & Barroway, LLP CONTACT: Darren J. Check, Esq. or Richard A. Maniskas, Esq. of Schiffrin & Barroway, LLP, +1-888-299-7706, or +1-610-667-7706, Web site: http://www.sbclasslaw.com/

Copyright