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Veritas faces investor lawsuit

Storage-software maker gets hit with an investor lawsuit in the wake of its earnings warning.

The bad news continues for storage-software maker Veritas Software, which was hit this week with an investor lawsuit in the wake of its earnings warning. The law firm of Goodkind Labaton Rudoff & Sucharow said this week that it filed a class-action suit against Veritas, CEO Gary Bloom and Chief Financial Officer Edwin Gillis.

The law firm alleged that despite "having no reasonable basis to do so, Defendants caused the company to confirm expectations that its revenue for second-quarter 2004 would be $490 (million) to $505 million and earnings per share for the quarter would be $0.21 to $0.23." Veritas confirmed such guidance June 14, but on July 6 said it expected June quarter revenue in the range of $475 million to $485 million, and earnings per share of between 17 cents and 19 cents. A Veritas representative declined to comment on the lawsuit.