FOX & KILSHEIMER LLP FILES
SECURITIES FRAUD CLASS ACTION
AGAINST CRITICAL PATH, INC.
NEW YORK – – Kaplan Fox & Kilsheimer LLP (www.KaplanFox.com) has filed a Class Action against Critical Path, Inc. and certain of the Company’s officers and
directors in the United States District Court for the Northern District of California. The suit is brought on behalf of all persons or entities who purchased the
common stock of Critical Path, Inc. (“Critical Path”) (NASDAQ: CPTH) between November 2, 2000 and February 1, 2001 inclusive (the “Class Period”).
The complaint charges Critical Path and certain of its officers and
directors with violations of the Securities Exchange Act of 1934. Critical Path provides e-mail hosting services to a variety of organizations, including Internet service
providers, Web hosting companies, Web portals, and corporations. The complaint alleges that many of these types of companies were new and were suffering from a downturn in
Internet-related funding, which began in the spring of 2000. Defendants also allegedly knew for months that new accounting regulations would negate the Company's ability
to continue to recognize up front license fees in Q4 2000. Defendants knew this would severely impair Critical Path's future revenue growth and impair their ability to
make future stock sales and extract future bonuses, which were tied to the Company's performance. Thus, defendants continued to make positive but false statements about
Critical Path's business and future revenues during Q4 2000. As a result, Critical Path's stock traded as high as $48.
On January 18, 2001 after the market closed, Critical Path
announced that in the fourth quarter 2000 it would report a multi-million dollar loss. This was directly contrary to what Critical Path's CEO had told shareholders and
analysts just weeks before. Then, on February 2, 2001, Critical Path announced that the Company's results reported on January 18, 2001, maybe materially misstated and
placed two of its senior officers on “administrative leave.” This disclosure shocked the market, causing Critical Path's stock to decline to less than $4 per share in
Plaintiff seeks to recover damages on behalf of
the Class and is represented by Kaplan Fox & Kilsheimer LLP. Our firm, with offices in New York and San Francisco, has many years of experience in prosecuting
investor class actions and actions involving financial fraud. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.KaplanFox.com.
If you are a member of the Class, you may move the court no later
than April 3, 2001, to serve as a lead plaintiff for the Class. In order to serve as a lead plaintiff, you must meet certain legal requirements.
If you have any questions about this Notice, the action, your
rights, or your interests, please e-mail us at mail@KaplanFox.com or contact:
Frederic S. Fox, Esq.
Joel B. Strauss, Esq.
Christine Fox, Esq.
Kaplan Fox & Kilsheimer LLP
805 Third Avenue - 22nd Floor
New York, NY 10022
Fax: (212) 687-7714
E-mail address: mail@KaplanFox.com
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