WebSecure hit with 4th class action

Legal problems are escalating for the Net access and service provider.

CNET News staff
Legal problems are escalating for WebSecure (WEBS), which this week was slapped with a fourth class-action lawsuit.

On May 5, a class-action suit was filed in a U.S. District Court against Websecure charging that the company filed a registration statement that contained false and misleading information in its initial public offering.

The suit also says that the Net access and support services provider did not disclose relevant facts concerning software technology acquired by WebSecure, the company's revenues, and Centennial Technologies, which is identified in registration statement as a related party.

Last month, the company announced that is was the target of three other class-action lawsuits related to its IPO, which launched last December at a value of just over $15 a share.

The stock plummeted to a low of 1-1/8 following the announcement of the lawsuits, but was trading today at 2-3/4.

Late last month, the company restated its quarterly results for the November 1996 quarter after an investigation found it had misstated its figures.

Neither WebSecure nor the attorney involved with the case was available for comment.