A class action lawsuit has been filed against Shiva by shareholders alleging the remote access vendor misrepresented or omitted information that would affect its financial results.
The complaint focuses on an inventory glut in the manufacturer?s distribution channels, shrinking turnover from the Lanrover product line and difficulties related to two of Shiva?s strategic partners.
The plaintiffs allege that the firm failed to disclose factors which would cause Q4 96 results to plunge from record Q3 figures.
Shiva?s turnover and profit for Q4, ended 28 December 1996, fell to $48.2 million and $1.5 million respectively from $57.1 million and $6 million in Q3, ended 28 September.
Shiva has issued a statement saying it believes the lawsuit to be ?entirely without merit? and that it intends to ?vigorously defend? the action.?
Commenting on the Q4 results, Shiva chairman and CEO Frank Ingari said: ?Developments late in the quarter, including orders not received from our channel partners, prevented us from meeting consensus revenue and earnings expectations.?
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