According to Earthtimes.org, a law firm called Coughlin Stoia Geller Rudman & Robbins LLP has filed a class action in Pennsylvania on behalf of purchasers of the common stock of Kenexa Corp. between May 8, 2007 and November 7, 2007.
The complaint charges Kenexa and some of its officers with violations of the Exchange Act. Kenexa, through its subsidiaries, provides software, services, and proprietary content that enable organizations to recruit and retain employees.
Here are the details: the complaint alleges that, throughout the Class Period, defendants failed to disclose material adverse facts about the Company’s true financial condition, business and prospects.
Specifically, the complaint alleges that defendants failed to disclose the following adverse facts, among others: (i) that sales cycles for the Company’s Employment Process Outsourcing (“EPO”) and assessments lines of business were lengthening, causing sales to be pushed out and revenue growth to slow; (ii) that the Company was experiencing problems with its international sales and would need to revamp that sales force; (iii) that the Company was experiencing problems with a significant EPO client such that the client was requesting to be released from its contract with the Company; and (iv) based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its earnings, operations and prospects.
On November 7, 2007, Kenexa issued a press release announcing its financial results for the third quarter of 2007, the period ended September 30, 2007. Following the earnings release, defendants held a conference call to discuss the Company’s earnings and operations. In response to the earnings announcement and the statements made during the conference call, the price of Kenexa stock dropped from $27.84 per share to $16.61 per share, or 40%, on extremely heavy trading volume.
Plaintiff seeks to recover damages on behalf of all purchasers of Kenexa common stock during the Class Period.
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