A class action lawsuit was filed against Commtouch Software Ltd. (NASDAQ:CTCHD) and certain officers in United States District Court for the Northern District of California on behalf of shareholders of Commtouch who acquired their shares between April 19, 2000 and February 13, 2001.
The Complaint charges that defendants violated federal securities laws by misstating its financials for the first three quarters of 2000. On February 14, 2001, Commtouch admitted that these financial statements contained accounting irregularities and that, subject to completion of the 2000 audit, Commtouch expects to restate its revenues and net loss for these three quarters and adjust revenues downwards by $4.4 million. This news caused Commtouch's shares to fall roughly 45%, resulting in substantial damage to the Class.
Plaintiff seeks to recover damages on behalf of all those who purchased Commtouch common stock during the Class Period, excluding defendants and their affiliates.