Murray, Frank & Sailer LLP is investigating a class action lawsuit on behalf of all securities purchasers of Ceridian Corporation (NYSE: CEN) ("Ceridian" or the "Company") from April 17, 2003 through July 19, 2004 inclusive (the "Class Period").
Ceridian is an information services company principally in the human resource, transportation and retail markets.
The firm is investigating whether Ceridian and certain of its officers violated the Securities Exchange Act of 1934. More specifically, the investigation concerns whether the Company failed to disclose and misrepresented the following material adverse facts: (1) that the Company improperly recognized $37 million in revenues in its SVS unit; (2) that the Company improperly accounted for the capitalization of upfront costs its US Human Resource Solutions business by capitalizing such costs rather than expensing them; (3) that the Company's financial results were in violation of Generally Accepted Accounting Principles ("GAAP"); (3) the Company lacked adequate internal controls; and (4) that as a result of the above, the Company's financial results were materially inflated at all relevant times.
On July 19, 2004, Ceridian announced that it had postponed its second quarter earnings release and related investors teleconference and Webcast. The delay was prompted by the Company's recent initiation of a review focusing on the capitalization and expensing of certain costs in its U.S. Human Resource Solutions business. News of this shocked the market. Shares of fell $2.13 per share or 10.47 percent, on July 20, 2004, to close at $18.21 per share.
If you would like information, please contact Eric J. Belfi at 1-800-497-8076 or at [email protected].