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http://www.lawssb.com/Omega/amended_complaint.htm
> 21. In addition to the foregoing overstatement of sales, the Company
> and the Prospectus understated product returns and failed to
> disclose that the Company utilized sales techniques to defer refunds
> and thus charges against reserves which had been set aside for
> product returns. For example, customers normally received the
> opportunity to return products within 30 days without financial
> penalty and for a complete refund. The Prospectus fails to disclose
> that the 30 day trial period was frequently and/or routinely extended
> by one or more months, at Omega Research’s request, thereby
> deferring the reversal of sales and revenues for extended periods and
> thus overstating those sales and revenues. A material amount of such
> deferrals existed at the time of the Company’s then-most recent
> reported financial results included within the Prospectus, thus further
> materially overstating the Company’s reported sales and revenues.
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Dennis
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