Legal Complaint Against Printcafe Alleges Misleading IPO Information
Press release from the issuing company
June 26 -- (WhatTheyThink.com) -- Two law firms (Cauley Geller Bowman & Rudman, LLP and Schiffrin & Barroway, LLP) both announced in separate releases that a class action lawsuit has been filed on behalf of purchasers of Printcafe Software, Inc. common stock during the period between June 18, 2002 and October 22, 2002.
The complaint alleges that "Printcafe violated portions of the Securities Act of 1933 by issuing a materially false and misleading Registration Statement and Prospectus in connection with Printcafe's initial public offering (IPO). The complaint alleges that the Registration Statement and Prospectus were materially false and misleading because statements made therein failed to disclose and misrepresented the following adverse facts, among others:
(a) that demand for the Company's products and services was declining to the extent that the Company was not performing in line with its internal expectations;
(b) that the Company's product development efforts were experiencing difficulties; and
(c) that the Company's declining financial performance would require it to engage in a material restructuring of its operations in order to generate cost savings and reverse that negative trend.
Cauley Geller Bowman & Rudman said in their statement that the complaint was online, but when we checked, it was not available. WTT was unable to reach Printcafe before our publishing deadline. We hope to have more information later today.
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