MILWAUKEE, April 16, 2003 (PRIMEZONE) -- The Law Firm of Ademi & O'Reilly, LLP announced today that a class action has been filed in the United States District Court for the Northern District of Texas on behalf of purchasers of i2 Technologies, Inc. (Nasdaq:ITWOE) ("i2 Technologies" or the "Company") publicly traded securities during the period between April 18, 2000 and January 24, 2003, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at www.ademilaw.com/cases/i2.pdf.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between April 18, 2000 and January 24, 2003, thereby artificially inflating the price of i2 securities. The complaint alleges that throughout the Class Period, in press releases and in filings with the SEC, the Company reported increasing revenues and "record" financial results. As alleged in the complaint, these statements were each materially false and misleading when made because they failed to disclose and/or misrepresented the following adverse facts, among others: (i) that the Company had materially overstated its revenue by improperly recognizing revenue on certain customer contracts; (ii) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (iii) as a result of the foregoing, the Company's financial statements issued during the Class Period were materially false and misleading.
On January 27, 2003, before the opening of trading, i2 shocked the investing public when it announced that it would re-audit its financial statements for the years ended December 31, 2000 and 2001 because "recent information developed during the audit committee's ongoing investigation of certain allegations regarding the company's revenue recognition with respect to certain customer contracts and its financial reporting for those years." The Company further reported that it had notified the SEC of these allegations, and that the SEC staff has begun an informal inquiry into these matters. The Company also advised investors that they should not rely on the financial information contained in the company's annual reports on Form 10-K for the years ended December 31, 2000 and 2001 or in the company's quarterly reports on Form 10-Q for the quarters ended March 31, 2000 through September 30, 2002.
Market reaction was swift and negative, with i2 common stock falling from a close of $1.26 on January 24, 2003 to a close of $0.92 on January 27, 2003, the next trading day, or a single-day decline of more than 26%, on very heavy trading volume.
If you bought i2 Technologies publicly traded securities between April 18, 2000 and January 24, 2003, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than May 27, 2003. If you are a member of this class, you can join this class action online at www.ademilaw.com/cases/i2.php. Any member of the purported class may move the Court to serve as lead plaintiff through Ademi & O'Reilly or other counsel of their choice, or may choose to do nothing and remain an absent class member.
If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at www.ademilaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.