Storage firm Veritas has come to blows with its investors over questionable financial reporting to keep share prices stable, a law-firm has said.
Investors have filed a class-action suit against the firm’s CEO, Gary Bloom, and CFO, Edwin Gillis.
In a press release, New York law firm Goodkind Labaton Rudoff and Sucharow LLP said Veritas confirmed earnings expectations without reasonable basis and its contractual prospects and financial condition failed to disclose information accurately.
The suit also said that Veritas knew about – or recklessly disregarded – negotiations on some contracts had yet to be concluded.
Veritas had predicted its 2004 second-quarter revenue would be $490 million to $505 million. But three weeks after the report was published, the firm’s shares fell and it put Q2 revenue at $475 million to $485 million.