Investors sue Quarterdeck
Quarterdeck, which has seen its stock price fall by half in the past year, is hit with a shareholder lawsuit.
A group of investors has filed a class-action lawsuit, alleging that the utilities software maker and its executives made false statements about the financial health of the company, charging that the company and its representatives gave misleading information about its Internet and data communications products between January 26 to June 13.
The suit also alleges that Quarterdeck's inflated stock price allowed it to make two stock-swap acquisitions before the company disclosed June 13 that it expected sharply lower sales and earnings in the third quarter.
Quarterdeck's stock fell to 8 points after the disclosure, whereas it traded as high as 19-7/8 earlier in the year. The stock now trades around 6 points.
The company last month posted a $75 million net loss for the year and reported that revenues had fallen by half in the last two quarters, compared to the first half of the year.