Dear List Members:
As an EDI consultant I am currently working on a project in which I will end
up making a recommendation as to which EDI software package to be licensed
and implemented by my client. The search has been narrowed down to three,
and we have had on-site demos from all three vendors. Mercator is one of
the three.
The reason for writing to the List is to ask for advice. In recent weeks
Mercator's share price has fallen dramatically, with the latest news
appearing to be the filing of four separate class action law suits on behalf
of Mercator share holders (please see an example below). I foresee problems
at Mercator such as higher turnover of staff and lower morale. Also with a
lower share price and therefore a lower capitalization, Mercator's ability
to acquire other companies is reduced. In fact the reverse may even be
true - Mercator as a target of acquisition.
As a consultant, I'm concerned about my reputation, i.e. I don't want to
recommend a product from a company which may not be in the greatest shape.
I have voiced my concerns to Mercator, but it appears that the CFO, who was
the person I was supposed to speak with, has just left the company.
What does the List think? Thoughts to the List or to my private e-mail
would be much appreciated.
Thanks,
Steve S. Rouff
Managing Consultant
[EMAIL PROTECTED]
Cohen, Milstein, Hausfeld & Toll, P.L.L.C. Files Class Action Suit Against
Mercator Software, Inc.
WASHINGTON, Aug. 24 /PRNewswire/ -- The following notice is issued by the
law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C. on behalf of its
client, who filed a lawsuit today in the United States District Court for
the District of Connecticut, on behalf of purchasers of the common stock of
Mercator Software, Inc. (``Mercator'') (Nasdaq: MCTR
<http://finance.yahoo.com/q?s=mctr&d=t> - news </n/m/mctr.html>) during the
period between April 20, 2000 and August 21, 2000, inclusive.
The complaint alleges that Mercator and certain officers and directors
issued false and misleading financial statements and press releases to the
investing public concerning the Company's publicly reported earnings and
expenses. Moreover, the Company omitted to state material information
necessary to be issued in order to make prior statements not misleading.
Specifically, on August 21, 2000, after the market had closed, Mercator
shocked the investing community by announcing that the Company had restated
and lowered first and second quarter 2000 earnings to account for
approximately $2.4 million of under-reported expenses for the period. In
addition, the Company stated that it made key managements changes to
strengthen financial controls and oversight, including the termination of
several members of upper management.
The Company said that discrepancies in the reporting of expenses surfaced in
a review by outside auditors. Following the review, the Company appointed a
new chairman and stated that defendant Kevin McKay, its chief financial
officer, only appointed for weeks ago, had resigned.
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