Citrix shareholders file fraud charges
Financially ailing Citrix Systems is dealt another blow when shareholders file a lawsuit accusing the company of misrepresenting its business health.
The Law Firm of Cauley & Geller of Boca Raton, Fla., filed a class-action suit in the Southern District of Florida on behalf of all investors that owned Citrix shares between October 20, 1999, and June 9, 2000.
The suit alleges that the Fort Lauderdale, Fla.-based company broke federal securities laws by releasing "materially false and misleading information about the company's financial condition and future growth potential," the law firm said in a statement.
Citrix shares fell 69 cents to $24.25 in morning trading today. The stock has fallen 60 percent this month and has traded within a range of $122.31 and $21.68 over the past 52 weeks.
Following a company policy, Citrix would not comment on pending litigation.
The company, which makes software that enables access to Windows NT, Windows 2000 and Unix applications from a range of computing devices, warned investors Monday that revenue and earnings would not meet analysts' expectations for the quarter.
The shareholder suit specifically charges the company reported record operating results and favorable customer demand on Jan. 19, when "the company knew or recklessly disregarded that the company's true financial condition was deteriorating and that its seemingly stellar growth was not likely to continue into 2000."