WITS Witness Systems (MM)

Goldman Scarlato & Karon, P.C., a law firm with offices in Pennsylvania and Ohio, announces that a lawsuit has been filed in the United States District Court for the Northern District of Georgia, on behalf of persons who purchased or otherwise acquired publicly traded securities of Witness Systems, Inc. ("Witness Systems" or the "Company") (NASDAQ:WITS) between April 23, 2004 and August 11, 2006, inclusive, (the "Class Period"). The lawsuit was filed against Witness Systems and David B. Gould, Nicholas Discombe, William Evans, Joel G. Katz, Thomas J. Crotty and Loren Wimpfheimer ("Defendants"). If you are a member of this class and wish to view a copy of a complaint and join this class action, please e-mail us at info@gsk-law.com and request a copy of the complaint and a plaintiff certification. If you are a member of the Class, you may move the Court no later than October 16, 2006 to serve as a lead plaintiff for the Class. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that Defendants failed to disclose that they had engaged in the backdating of stock option grants to certain officers and directors of the Company and failed to properly account for the expenses arising from that activity. On August 8, 2006, the Company announced that its Board of Directors had formed a special committee to investigate the Company's stock option practices based upon the finding of certain discrepancies. On August 11, 2006, the Company disclosed that it intended to restate its prior financial results as well as that it received an indication from NASDAQ that it may be subject to delisting as a result of the disclosed matters. Shares of Witness Systems reacted negatively to the news, falling from $13.48 per share to $12.91 per share. If you bought Witness Systems securities between April 23, 2004 and August 11, 2006, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (888) 753-2796 to speak with an advisor.