NEWS - Tuesday, July 19, 2005


Majesco Faces Class Action Suit

Majesco Faces Class Action Suit Majesco, which earlier this month changed its earnings outlook to predict severe losses, now faces a class-action lawsuit related to the sudden downturn. Spearheaded by law firm Chitwood Harley Harnes LLP, the proposed class action suit names Majesco, former CEO Carl Yankowski, and former CFO Jan E. Chasen as defendants. The suit, which covers the period from December 8, 2004 and July 12, 2005, claims that the games company issued "a series of materially false and misleading statements," effectively inflating the market price of its securities. According to Chitwood Harley Harnes, the defendants "touted the diversification of Majesco's product line and stated that the Company's revenue and income would significantly increase in fiscal year 2005." The suit claims that the predicted revenue increase was unreasonable, as the company was relying on the success of just one game, and was improperly accounting for development costs. The firm claims that "the truth emerged on July 12," when Majesco adjusted its earnings from $16 to $18 million in income to a loss of $16 to $19 million. The same day, Majesco announced that Yankowski had resigned as CEO. By July 13, the company's shares fell 48% to $3.56. Earlier this year, Majesco released Psychonauts and Advent Rising, both of which were key titles for the company. For its part, Psychonauts won critical praise, but it isn't clear that the title has made much impact at retail.
Source: http://www.ign.com

Comments

Site Statistics

Registered Members: 44,597
Forum Posts: 725,799
Xbox One Titles: 1,252
Xbox 360 Titles: 1,085
Xbox 360 Kinect Titles: 95
Xbox 360 Arcade Titles: 585
Original Xbox Titles: 987
Staff Reviews: 1,702
Member Reviews: 10,339
News Articles: 14,426
Screenshots: 31,238
Xbox 360 Achievements: 45,112
Xbox 360 Faceplates: 2,016
Cheat Codes: 1,706

Latest News








See News Archives

Community Forum Activity

Xbox One X Black Panther
Post by oryanphine
1 Replies, 120 Views

Xbox Playdates Canada May 2018 schedule
Post by Kiesey
3 Replies, 219 Views

Is anything happening in XBox One land?
Post by DJ tx
7 Replies, 467 Views

Xbox One S Jojeux Anniversaire
Post by oryanphine
1 Replies, 305 Views

Xbox One X Steelbook
Post by oryanphine
1 Replies, 346 Views

Xbox Playdates Canada April 2018 Schedule
Post by Kiesey
4 Replies, 606 Views

Xbox One X World of tanks
Post by oryanphine
2 Replies, 789 Views

Xbox Playdates Canada - March 2018 Schedule
Post by Kiesey
7 Replies, 974 Views

Any info on Biomutant release?
Post by DJ tx
4 Replies, 889 Views

Xbox Playdates Canada - February Playdates Schedule
Post by Kiesey
8 Replies, 1156 Views

Xbox Prototype Communicator
Post by oryanphine
1 Replies, 1418 Views

Xbox One S Dragon Ball Fighterz
Post by oryanphine
0 Replies, 942 Views

Xbox One S Theme Hockey
Post by oryanphine
0 Replies, 815 Views

New Fable is coming!
Post by Shadow20002
2 Replies, 1115 Views

RPG Recommendation?
Post by DJ tx
8 Replies, 1186 Views

© 2000-2018 XboxAddict.com - All rights reserved. All trademarks are properties of their respective owners.
Xbox is a registered trademark of Microsoft. XboxAddict.com is not affiliated with Microsoft.

Made in Canada
Site Design by Cameron Graphics