CheckFree's Cloudy Future: B of A Has Billpay Options

April 22, 2007

A shareholder lawsuit has been recently filed against CheckFree (CKFR) and its management for allegedly disseminating misleading guidance on CKFR's Ecommerce transaction growth forecast between April and July of  2006. This alleged misguidance caused equity analysts to raise their earnings estimates, driving up CKFR's share price. The company's actual results announced on August 1, 2006 fell short of these estimates causing the share price to fall by 21%. The timing of this lawsuit coincides with rumors about CKFR losing its contract with Bank of America (BAC).

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