Suit Against Kenexa Seeking Class-Action Status
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.
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June 16, 2009
Suit Against Kenexa Seeking Class-Action Status
A lawsuit seeking class-action status has been filed against Kenexa Corp., a
Wayne, Pennsylvania-based recruitment software and recruitment process
outsourcing firm, alleging the company’s top officers misled investors and
violated federal securities law between May 8, 2007, and November 7, 2007,
according to a court filing.
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.
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