BALA CYNWYD, Pa., Aug. 14, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the District of Arizona on behalf of all purchasers of the common stock of Insight Enterprises Inc. (Nasdaq:NSIT) ("Insight" or the "Company") publicly traded securities during the period between April 26, 2002 and July 17, 2002, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges Insight Enterprises Inc. and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that throughout the Class Period, defendants represented that the Company would achieve sequential earnings per share ("EPS") growth in Q2 2002.
The true facts, which were known by the defendants during the Class Period but were actively concealed by the defendants, were as follows: (a) That in April 2002, the defendants learned that the Company was not on track to achieve Q2 EPS growth or Q2 EPS of $0.31-$0.35; (b) That the Company's United Kingdom operations required a massive restructuring; ( c) That the Company's purchase of Action plc in Q4 2001 had not been properly integrated into the Company's operations and moreover was suffering from material adverse trends; and (d) That on or about May 1, 2002, defendants decided internally to send senior executives from its recently acquired Comark acquisition to the Company's Action plc division to try to solve the division's problems, including the effect of the adverse trends (reduced demand, greater than projected operating expenses and declining market share) which defendants became aware of by April 2002.
During the Class Period defendants sold over $10 million worth of their own Insight shares at prices as high as $28 per share, or double the price to which Insight shares dropped as Insight's true prospects began to reach the market. On July 17, 2002, Insight revealed that, contrary to prior assurances by defendants of Insight's continuing revenue and EPS growth, it would post sequential EPS declines, sending Insight's shares into a free fall.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, LLP, which prosecutes class actions on behalf of investors and shareholders. For more information on Schiffrin & Barroway, or to sign-up to participate in this action online, please visit http://www.sbclasslaw.com/cgi/signup.cgi.
If you are a member of the class described above, you may, not later than September 27, 2002, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca