A Florida union trust fund has sued Kenexa Corp. and two of its executives, charging that the Wayne-based employment software company failed to disclose issues that eventually contributed to a decline in share price in 2007.
In a statement, Kenexa denied all allegations, but said more suits may follow.
The Pension-Annuity Trust Fund of the Plumbers and Pipefitters Local 630 in Florida seeks class action status in the federal lawsuit filed in Philadelphia last week against Kenexa, its chief executive Nooruddin Karsan and chief financial officer Donald Volk.
The suit says Kenexa executives misled the Local 630 fund and other investors with rosy reports until Nov. 7, 2007, when shares dropped by two-fifths to $16.61 a share on news of problems with a major customer and with a strategic component of the business.
Kenexa shares have traded in a 52-week range of $3.66 to $24.01, and were down 46 cents, to $12.93 in late morning trading. - Jane M. Von Bergen