The Business Review is reporting that several class action lawsuits have been launched against Schenectady-based AuthentiDate:
AuthentiDate Holding Corp. is the subject of four class action lawsuits from shareholders who claim the firm made false or misleading statements in connection with AuthentiDate’s electronic postmark.
The first lawsuit was filed June 3 by Lerach Coughlin Stoia Geller Rudman & Robbins LLP in the U.S. District Court for the Southern District of New York, and involves shareholders who purchased stocks between Sept. 29, 2003 and May 27, 2005.
On June 6, three other firms announced they also had filed class action lawsuits against AuthentiDate (Nasdaq: ADAT) on behalf of purchasers of the stock during the same period. The firms filing lawsuits Monday were Brian M. Felgoise P.C. of Philadelphia, Schatz & Nobel P.C. of Hartford, Conn., and Brodsky & Smith LLC of Bala Cynwyd, Penn.
Here’s more:
The complaint alleges that “defendants made materially false and misleading statements regarding the company’s business and prospects, specifically about revenues to be derived from an agreement with the U.S. Postal Service.”
According to the lawsuit, AuthentiDate “also concealed certain internal control problems. These false statements caused AuthentiDate stock to trade at artificially inflated levels.”