The complaint charges that defendants, Art Technology, CEO Jeet Singh and Chairman of the Board Joseph Chung, violated federal securities laws by, among other things, issuing false misleading statements regarding ATG's financial condition as well as its present and future business prospects.

Specifically, the company announced in a January 25, 2001 press release that, "ATG capped an extraordinary and profitable calender year 2000 with a record-breaking quarter that was strong across all metrics . . . [t]he combination of highly competitive product offerings, excellent market positioning, and broad customer base leaves us very well positioned for the coming year. As a result, we are raising our revenue expectations for 2001." However, only two months later, on April 2, 2001, the company announced that earnings for the first quarter ending March 30, 2001 would be significantly below these announced expectations. The Company said that it would post a loss of between 19 and 22 cents per share for the quarter, instead of a profit of 9 cents per share which it had indicated earlier. The Company also said that revenues for the quarter would be between $40 million and $42 million, instead of the previously touted $69 million. This disclosure shocked the market, causing ATG's stock to lose over 50% from its prior day close, and over 85% from where it was selling after the January 25 press release.

Plaintiff seeks to recover damages on behalf of all those who purchased ATG common stock during the Class Period, excluding defendants and their affiliates.

Update

Defendants' motion for Summary Judgment is pending.