WITS Witness Systems (MM)

WASHINGTON, Aug. 17 /PRNewswire/ -- The law firm of Finkelstein, Thompson & Loughran announces that a lawsuit seeking class action status has been filed in the United States District Court for Northern District of Georgia against Witness Systems Inc. ("Witness Systems" or the "Company") (NASDAQ:WITS) and certain of its officers and directors on behalf of purchasers of Witness Systems' securities between April 23, 2004, and August 11, 2006, inclusive, (the "Class Period"). Finkelstein, Thompson & Loughran is investigating similar claims at this time and welcomes inquiries from potential class members concerning their rights and interests in this matter. The lawsuit alleges that Witness Systems violated federal securities laws by issuing false or misleading public statements regarding its financial results for the period between February 2000 through August 2002, that the Company omitted to disclose that it was engaging in the backdating of stock option grants to executives and other employees, and that its financial statements violated generally accepted accounting principles. The complaint further alleges that various executives and officers engaged in suspicious insider trading activity. On July 27, 2006, the Company announced that it was reviewing its stock option grants. On August 9, 2006, the Company issued a press release announcing that it had formed a special committee to investigate its stock option grants because it had "identified a number of different deficiencies in the company's practices, procedures and documentation." Witness Systems estimated that it would take a non-cash charge of approximately $10 million and disclosed that its financial statements filed with the Securities and Exchange Commission should no longer be relied upon. The market reacted sharply to this news with Witness Systems' share price dropping from a close of $18.19 on July 27, 2006 to a close of $13.48 on August 10, 2006. If you are a member of the class, you may, no later than October 16, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member appointed by the Court to direct the litigation on behalf of the class. Although a class member need not be appointed as a lead plaintiff to receive a proportionate share of any proceeds of the litigation, lead plaintiffs make important decisions that could affect the prosecution of the class claims, including decisions concerning settlement. The securities laws create a rebuttable presumption that the plaintiff with the largest financial interest in the litigation is the most adequate to serve as a lead plaintiff. With offices in Washington, DC and San Francisco, CA, Finkelstein, Thompson & Loughran has spent almost three decades delivering outstanding representation to institutional and individual clients in connection with securities and other finance-related litigation, and has been appointed as lead or co-lead counsel in dozens of shareholder class actions. Indeed, in the past ten years, the firm has served in leadership roles in cases that have recovered over $1 billion for investors and consumers. If you have any questions concerning this press release or your rights or interests, please contact Finkelstein, Thompson & Loughran's Washington, DC office at (877) 337-1050, or by email at . DATASOURCE: Finkelstein, Thompson & Loughran CONTACT: Benjamin J. Weir or Donald Enright of Finkelstein, Thompson & Loughran, +1-877-337-1050 Web site: http://www.ftllaw.com/

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