Murray, Frank & Sailer LLP is investigating a class action lawsuit on behalf who purchased or otherwise acquired securities of Embarcadero Technologies, Inc. (NASDAQ: EMBTE); ("Embarcadero" or the "Company") between April 20, 2004 and October 27, 2004, inclusive (the "Class Period").
Murray, Frank & Sailer LLP has learned that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) the Company had materially overstated its earnings per share and net income; (2) defendants had improperly recognized revenue in its UK subsidiary prematurely; (3) the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (4) the Company lacked adequate internal controls and, as a result, was unable to calculate the true financial condition of the Company; and (5) as a result, the Company's net income and financial results were materially overstated at all relevant times.
On October 27, 2004, after trading has closed, Embarcadero Technologies announced it would delay release of its 3Q financial results for the quarter ended September 30, 2004. Additionally, the Company’s Audit Committee commenced an investigation of the revenue recognition practices of Embarcadero Europe Ltd. (Embarcadero Europe - its UK subsidiary), following recent revelations relating to Embarcadero Europe's resellers. Shares of Embarcadero Technologies fell $2.29 per share, or 23.20 percent, by on October 28, 2004.
The deadline to join this potential action with Murray, Frank & Sailer LLP is January 4, 2005. If you would like information, please contact Eric J. Belfi at 1-800-497-8076 or at [email protected].