July 20^th, 2005 (1:08am) - Over the past year it seemed as if Majesco had been a publisher on the rise. With games such as Phantom Dust and Psychonauts earning critical acclaim from reviewers across the globe, hardcore gamers took note of the publisher’s knack of picking up some high quality game titles. However, due to slow sales of Psychonauts and the commercial and critical failure of Advent Rising, Majesco’s shares took a dive and on July 12th CEO Carl Yankowski quit the company after Majesco lowered its financial outlook for 2005 from its original projections of $175 and $185 million to $120 and $125 million. Its estimated annual profit also fell steeply, going from $16 to $18 million in operating income to an operating loss of $16 to $19 million.

Just 24 hours after the announcement of Yankowski’s resignation, shares in the company fell 47 percent from $6.89 per share to $3.25. Currently, share prices for the company aren’t that much high, as it closed at $3.42.

Enraged by this turn of events, major stockholders in the company have filed a lawsuit against Majesco for drastically lowering estimates. Four class-action lawsuits have been filed this week, with three filed today alone. The suits are being handled by the firms of Chitwood Harley Harnes LLP, Brian M. Felgoise PC, Schatz & Nobel PC, and Weiss Bershad & Schulman LLP.