SOURCE: Kendall Law Group, LLP

Kendall Law Group, LLP

June 12, 2009 15:35 ET

Former Federal Judge and US Attorney Announce Class Action Against Kenexa Corporation

DALLAS, TX--(Marketwire - June 12, 2009) - Kendall Law Group, led by former Federal Judge Joe Kendall and former U.S. Attorney Jim Rolfe, announces that a class action lawsuit has been filed on behalf of those who purchased the common stock of Kenexa Corp. (NASDAQ: KNXA) between May 8, 2007 and November 7, 2007.

The Complaint, filed in the U.S. District Court for the Eastern District of Pennsylvania, charges that Kenexa and certain of its officers and directors violated the federal securities laws. Specifically, the Complaint states that the defendants failed to disclose the following adverse facts: (i) that sales cycles for the Company's Employment Process Outsourcing ("EPO") and assessments lines of business were lengthening, causing sales to be pushed out and revenue growth to slow; (ii) that Kenexa was experiencing problems with its international sales and would need to overhaul that sales force; (iii) that the Company was experiencing problems with a significant EPO client such that the client was requesting to be released from its contract with the Company; and (iv) that based on that knowledge, defendants lacked a reasonable basis for their positive statements about the Company, its earnings, operations and prospects.

On November 7, 2007, Kenexa issued a press release announcing its financial results for the third quarter of 2007. Following the earnings release, defendants held a conference call to discuss the Company's earnings and operations. In response to the earnings announcement and the statements made during the conference call, the price of Kenexa stock dropped from $27.84 per share to $16.61 per share, or 40%, on extremely heavy trading volume.

If you are a member of the class, you may, no later than August 10, 2009, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members. If you wish to serve as a lead plaintiff, please contact Hamilton Lindley at 877-744-3728 or by email at

Although Kendall Law Group has not filed a lawsuit against the defendants, the firm has tremendous experience in representing investors against companies that have committed securities fraud. For more information about this case, your rights, and Kendall Law Group please visit: or call us at 877-744-3728.