DALLAS, Oct. 7 /PRNewswire/ -- The law firm of Baron & Budd, P.C. announces that it has filed a class action lawsuit in the United States District Court for the Northern District of Texas on behalf of purchasers of Zix Corporation (Nasdaq:
ZIXI -
News; "Zix" or the "Company") securities during the period between October 30, 2003 and May 4, 2004, inclusive (the "Class Period").
The complaint charges Zix, as well as Zix corporate officers John A. Ryan, Steve M. York, Ronald A. Woessner, Daniel S. Nutkis, Russell J. Morgan, Wael Mohamed, and Dennis F. Heathcote, with violations of Sections 10(b)-5 and 20(a) of the Securities Exchange Act of 1934, and Rule 10(b)-5 promulgated thereunder. 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 the Company's deployment of e-prescription services was languishing; (2) that the Company seriously underestimated the hurdles of deploying e-prescription services in medical offices that lack up-to-date IT infrastructure; (3) as a result of these factors, the Company's deployment rate of 1,000 physicians a month was unattainable; and (4) as a consequence of the foregoing, the Company's projections lacked in any reasonable basis.
On May 4, 2004, Zix announced financial results for the first quarter ended March 31, 2004. In the press release, the Company's numbers were well below expectations. This news shocked the market. Shares of Zix fell $2.12 per share or 15.58 percent on May 5, 2004, to close at $11.49 per share. On the following day, shares of Zix fell an additional $2.60 per share or 22.63 percent to close at $8.89 per share.
If you acquired the securities of Zix during the Class Period and sustained damages, you may, no later than November 2, 2004, move for appointment of lead plaintiff on behalf of the proposed class. In order to serve as a lead plaintiff you must meet certain legal requirements.
If you are a member of this class and would like to view a copy of the complaint and join this class action, please visit Baron & Budd online. Information on your legal rights can be obtained by contacting the law firm of Baron & Budd, P.C.
About Baron & Budd, P.C.
Since 1977, the law firm of Baron & Budd, P.C. has championed the rights of people and communities harmed by corporate misconduct. With over 70 attorneys and offices in Texas, Illinois, Ohio, Louisiana, and New York, Baron & Budd enjoys a national reputation as a leader of the plaintiffs' bar. The firm represents individuals with mesothelioma and other diseases caused by asbestos; leukemia caused by benzene; injuries caused by other toxic substances and unsafe pharmaceuticals; water authorities seeking clean-up costs for drinking water contamination; securities investors defrauded by corporate wrongdoing; and consumers in class actions. For more information, call 1-800-222-2766 or visit http://www.baronandbudd.com .
