SAN DIEGO, April 5, 2004 (PRIMEZONE) -- The Law Firm of Robbins Umeda & Fink, LLP announces that a class action lawsuit was filed in the United States District Court for the Southern District of California on behalf of purchasers of the common stock of The Titan Corporation ("Titan" or the "Company") (NYSE:TTN) between July 24, 2003 and March 22, 2004, inclusive (the "Class Period"). If you are a member of this class, please call 1-800-350-6003.
The complaint charges Titan and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Further, the complaint asserts claims against defendants Titan, Gene W. Ray and Mark W. Sopp for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
Specifically, the complaint alleges that Titan was achieving record results by engaging in illegal and/or impermissible practices by secretly paying kickbacks in the form of "consulting fees" to foreign government officials in connection with Titan's sale of hand-held radios and related products to foreign governments. As the defendants were announcing record revenue and earnings growth during the Class Period, portions of which were derived by sales obtained through these illegal means, defendants knew or were reckless in not knowing that their illegal practices would be discovered and that Titan would be penalized.
Defendants' misconduct throughout the Class Period was designed to perpetuate the perception of Titan as a company that was poised for continued growth and whose stock would soon be acquired by Lockheed Martin at a substantial premium to its pre-merger announcement trading price. With their pockets full of certain separation benefits already paid in connection with the planned acquisition by Lockheed Martin, defendants disclosed that Lockheed was delaying consummation of the acquisition until it could investigate Titan's payments to foreign officials through consultants. It was also revealed that the Securities and Exchange Commission and the U.S. Department of Justice had begun an inquiry into the illegality of the payments and Titan's disclosure of the payments.
The statements made by defendants during the Class Period were each false and misleading when made. The true facts, which were then known only to defendants, based upon internal Company data, were that Titan's revenues, earnings and profit margins during the Class Period were artificially inflated through improper and illicit practices, including: (a) that Titan was improperly inflating its revenues by reporting revenue on sales made possible only by making illegal payments to officials of foreign governments in order to induce them to make purchases from Titan; (b) that Titan's payments to foreign officials violated the Foreign Corrupt Practices Act, in violation of 15 U.S.C. Sec. 78dd, et seq.; and (c) that Titan was misreporting its foreign sales in violation of IRS regulations, which do not permit Titan to claim deductions for expenses incurred paying bribes to foreign "officials."
If you bought the securities of Titan between July 24, 2003 and March 22, 2004, you may qualify to serve as lead plaintiff in this action. If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today.
Robbins Umeda & Fink, LLP has significant experience prosecuting class actions on behalf of investors. If you wish to discuss this action, please call or e-mail the Firm at: