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Veritas hit with investor lawsuit over earnings
CEO and CFO in the firing line

By Ed Frauenheim

Published: Monday 12 July 2004

The bad news continues for storage-software maker Veritas, which was hit this week with an investor lawsuit in the wake of its earnings warning.

The law firm of Goodkind Labaton Rudoff & Sucharow said this week that it filed a class-action suit against Veritas, CEO Gary Bloom and CFO Edwin Gillis.

The law firm alleged that despite "having no reasonable basis to do so, Defendants caused the company to confirm expectations that its revenue for second-quarter 2004 would be $490 [million] to $505m and earnings per share for the quarter would be $0.21 to $0.23."

Veritas confirmed such guidance 14 June but on 6 July said it expected June quarter revenue in the range of $475m to $485m, and earnings per share of between 17 cents and 19 cents. A Veritas representative declined to comment on the lawsuit.

Ed Frauenheim writes for CNET News.com