BOSTON, Oct. 20, 2004 (PRIMEZONE) -- An investor has sued Intelligroup, Inc. ("Intelligroup" or the "Company") (Nasdaq:ITIGE), claiming the Company misled the investing public about its finances.
Berman DeValerio Pease Tabacco Burt & Pucillo (www.bermanesq.com) filed the class action in the U.S. District Court for the District of New Jersey. The lawsuit seeks damages for violations of federal securities laws on behalf of all investors who bought Intelligroup common stock from May 1, 2001 through and including September 24, 2004 (the "Class Period").
To receive a copy of the complaint, you may contact the court, call the firm at (800) 516-9926 or go to http://www.bermanesq.com/pdf/Intelligroup-Cplt.pdf.
The lawsuit claims that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder, including U.S. Securities and Exchange Commission ("SEC") Rule 10b-5.
The complaint names as defendants: Intelligroup; Arjun Valluripalli a.k.a. Arjun Valluri, who was at all relevant times the Company's chairman and chief executive officer; Nicholas Visco, who served as Intelligroup's senior vice president of finance and administration and chief financial officer from the beginning of the Class Period until November 2003; Edward Carr, who served as chief financial officer from November 2003 to April 2004; and David J. Distel, who was the Company's chief financial officer from April 2004 to the end of the Class Period.
The complaint alleges that, throughout the Class Period, Intelligroup publicly touted its strong financial performance. In reality, however, the Company's revenues, net income and earnings were materially misstated as a direct result of Intelligroup's improper accounting practices and inadequate internal controls, the lawsuit says.
On August 11, 2004, Intelligroup stunned the investing public when the Company announced that its independent auditors, Deloitte & Touche LLP, had resigned from serving as Intelligroup's independent registered accounting firm effective following the conclusion of its review of the Company's interim financial information for the second quarter of 2004.
On September 24, 2004, after the market closed, Intelligroup further shocked investors when the Company announced that it intended to restate its previously issued financial statements filed on Form 10-K for the years ended December 31, 2003, 2002 and 2001 and filed on Form 10-Q for the quarterly periods beginning January 1, 2001 to date.
In response to the news, the value of Intelligroup's stock declined 32% to close at $1.13 on September 27, 2004, the following trading day.
If you purchased Intelligroup common stock from May 1, 2001 through and including September 24, 2004, you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
Jeffrey C. Block, Esq. Colleen M. Conners, Esq. One Liberty Square Boston, MA 02109 (800) 516-9926 law@bermanesq.com
If you wish to apply to be lead plaintiff in this action, a motion on your behalf must be filed with the court no later than December 13, 2004. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action, or you may submit information online at http://www.bermanesq.com/Securities/Signup1.asp?caseid=529. Please note, you may also retain counsel of your choice and need not take any action at this time to be a class member.
Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations, and consumer fraud. The firm consists of 34 attorneys in Boston, San Francisco and West Palm Beach, Florida.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.