RADNOR, Pa., July 16 /PRNewswire/ -- The following statement was issued today by the law firm of Barroway Topaz Kessler Meltzer & Check, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Eastern District of Pennsylvania on behalf of purchasers of securities of Kenexa Corporation (Nasdaq: KNXA) ("Kenexa" or the "Company") between May 8, 2007 and November 7, 2007, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Barroway Topaz Kessler Meltzer & Check, LLP (Darren J. Check, Esq. or David M. Promisloff, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@btkmc.com.
The Complaint charges Kenexa and certain of its officers with violations of the Securities Exchange Act of 1934. Kenexa and its subsidiaries provide software and services which enable organizations to recruit and retain employees. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that one of Kenexa's largest employment process outsourcing customers was seeking to be released from its agreements with the Company; (2) that sales cycles for certain of the Company's lines of business were growing longer, thereby slowing the Company's revenue growth; (3) that Kenexa's international sales were suffering which would force the Company to reorganize its sales force; (4) that the Company lacked adequate internal and financial controls; and (5) that, as a result of the foregoing, the Company's statements about its financial well-being and future business prospects were lacking in any reasonable basis when made.
On November 7, 2007, the Company shocked investors when it announced its financial results for the 2007 fiscal third quarter and readjusted its 2007 earnings forecast downward. The Company lowered its projected 2007 total revenue to $181.5 million to $182.5 million, subscription revenue to $147.7 million to $148.5 million and non-GAAP operating income to $37.5 million to $37.9 million. Upon the release of this news, the Company's shares declined $11.23 per share, or 40 percent, to close on November 8, 2007 at $16.61 per share, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Barroway Topaz Kessler Meltzer & Check which prosecutes class actions in both state and federal courts throughout the country. Barroway Topaz Kessler Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.
For more information about Barroway Topaz Kessler Meltzer & Check, or for additional information about participating in this action, please visit www.btkmc.com.
If you are a member of the class described above, you may, not later than August 10, 2009, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
CONTACT: Barroway Topaz Kessler Meltzer & Check, LLP
Darren J. Check, Esq.
David M. Promisloff, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at info@btkmc.com
SOURCE Barroway Topaz Kessler Meltzer & Check, LLP
