Blue Coat Systems, Inc BCSI Securities Stock Fraud

Company:	Blue Coat Systems, Inc
Ticker Symbol:	BCSI
Class Period:	Nov-24-09 to May-27-10
Date Filed:	Aug-30-11
Lead Plaintiff Deadline:	Oct-29-11
Court:	Northern District of California
Allegations:

San Diego, CA: A securities class action lawsuit has been filed against Blue Coat Systems, Inc. ("Blue Coat" or the "Company") and certain of the Company's officers in the U.S. District Court for the Northern District of California. The action for violations of the Securities Exchange Act of 1934 is brought on behalf of those purchasing the common stock of Blue Coat between November 24, 2009 and May 27, 2010, inclusive (the "Class Period").

The complaint filed in the action charges that, during the Class Period, the Company issued false and misleading statements: overstating demand for Blue Coat's product and service offerings in its all-important European market (from which 40% of sales had traditionally originated), understating the difficulties Blue Coat was experiencing selling its WAN optimization products after the initial installation, understating the extent to which customers were cancelling orders of Blue Coat products and services, understating the extent to which Blue Coat was losing market share to competitors, and that as a result, defendants lacked a reasonable basis for their positive statements about the Company's business and financial prospects. As a result, the complaint charges that Blue Coat's stock traded at artificially inflated prices during the Class Period, allowing Blue Coat's senior executives to sell tens of millions of dollars of stock at inflated prices.

On May 27, 2010, defendants shocked the market by announcing, after the close of trading, that in reality, demand for Blue Coat's product and services offerings had significantly weakened in "almost every country in Europe." Defendants also disclosed that Blue Coat had been unable to close multiple sales in Europe. As a result, defendants significantly reduced the Company's forward sales revenue and earnings guidance, causing the Company's stock price to fall precipitously by more than 25% per share on unusually high trading volume when trading resumed on May 28, 2010.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

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