A new class action has been launched against beleaguered NetManage Inc of San Diego, California, alleging fraud and insider dealing by the company directors. NetManage, who develop internetworking applications for Windows, had a disastrous year in 1996, turning $22m of profits in 1995 into a $6m loss. Losses continued into the first quarter of 1997 with revenues still plummeting. The class action alleges that directors sold shares worth $2.8m when the stock was riding high at $18, passing on the tip to insiders at other firms, before releasing news of the impending doom. The case is being handled by class action specialists Milberg Weiss Bershad Hynes & Lerach.
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