The company said Friday, June 12, that the allegations are without merit and it will defend itself.
The complaint in the lawsuit cites positive comments made by the CEO and CFO regarding Kenexa during first- and second-quarter earnings releases on May 8, 2007 and August 8, 2007. However, the company missed its third-quarter revenue estimates.
And, on November 7, 2007, Kenexa reported it lost a customer in its recruitment process outsourcing division and cited longer sales cycles, according to the lawsuit. As a result, Kenexa’s shares fell to $16.61 from $27.84, the suit said.
The named plaintiff in the suit is the Plumbers and Pipefitters Local Union No. 630 Pension-Annuity Trust Fund.