Majesco’s earning expectations have dropped a whopping $32,000,000+ which in turn has led for a proposal of a class action lawsuit.
Last week Majesco Games had adjusted its annual earnings of an expected loss of $16 to $19 million. The bad news is that there was a previous earnings expectation of $16 to $18 million.
Acting accordingly, the law firm Chitwood Harley Harnes LLP has proposed a class action lawsuit against Majesco, former Majesco CEO Carl Yankowski (who as we recall just recently resigned), and Majesco’s former Chief Financial Officer Jan E. Chasen. The lawsuit claims that Majesco issued “materially false and misleading statements” which in turn would lead to a false market price of its securities and assets. Unfortunately the former CEO ad CFO “touted the diversification of Majesco's product line and stated that the company's revenue and income would significantly increase in fiscal year 2005.”
Majesco has declined to comment on the pending legal action. Will Ghost Rider be burned as well?