Live: Samsung Unpacked Live Updates Apple HomePod 2 Review Apple Earnings Preview Resurrecting the Dodo COVID Health Emergency to Expire DOJ Eyes Tesla Self-Driving Tech DC's 'Gods and Monsters' Slate Salami, Sausage Recalled
Want CNET to notify you of price drops and the latest stories?
No, thank you

Investors sue Quarterdeck

Quarterdeck, which has seen its stock price fall by half in the past year, is hit with a shareholder lawsuit.

Quarterdeck (QDEK), which has seen its stock price fall by half in the past year, has been 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.