LOS ANGELES, Jan. 20, 2005 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the Western District of Pennsylvania, Case No. 2:03cv00288, on behalf of a class (the "Class") consisting all persons or entities who purchased or otherwise acquired securities of IT Group, Inc. ("The IT Group" or the "Company") between October 21, 1998 and February 23, 2000, inclusive (the "Class Period"). The case, filed by Plaintiffs Howard G. Clair, Ralph S. Weaver and Carol S. Pintek, and captioned "Howard G. Clair et al. vs. Anthony J. DeLuca et al.," is currently pending before Judge William L. Standish at the U.S. Post Office and Courthouse located at Seventh Avenue and Grant Street, Pittsburgh, Pennsylvania 15219.
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges IT Group and certain of the Company's executive officers with violations of the Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Plaintiffs claim defendants' omissions and material misrepresentations concerning IT Group's financial performance, in Company quarterly press releases and Form 10-K annual reports and Form 10-Q quarterly reports filed with the Securities and Exchange Commission between October 21, 1998 and February 23, 2000, artificially inflated the Company's stock price, inflicting damages on investors. The Complaint alleges that during the Class Period defendants (i) overstated IT Group's accounts receivable by improper inclusion of unapproved change orders and purchase price adjustments made in connection with acquisitions; (ii) misrepresented the quality of IT Group's accounts receivable, by overstating billed receivables and understating unbilled receivables; (iii) concealed that the IT Group was undergoing a liquidity crisis due to the failure of its acquisitions strategy, (iv) failed to disclose that the government contracts, which IT Group claimed provided it with a multi-billion dollar backlog, were actually awarded to multiple vendors, and (v) failed to disclose that the quality of IT Group's receivables was impaired due to the Company's violation of the U.S. Government's Federal Acquisition Regulations "pay-when-paid" requirements.
Plaintiffs seek to recover damages on behalf of Class members and are represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you suffered a loss as a result of your purchase of IT Group shares during the Class Period described above, and are motivated to pursue the claims in this action on behalf of the Class, you may move the Court, not later than 60 days from the date of this Notice, to serve as lead plaintiff. Because the true facts concerning IT Group's financial performance were not disclosed at any time during the Class Period, Plaintiffs do not anticipate any conflicts arising among Class members.
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 Lionel Z. Glancy, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150, Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.