DALLAS, March 10, 2005 (PRIMEZONE) -- The law firm of Baron & Budd, P.C. announces that a class action lawsuit was filed in the United States District Court for the District of Utah on behalf of purchasers of iMergent, Inc. (AMEX:IIG)("iMergent" or the "Company") securities during the period between November 30, 2004 and February 25, 2005, inclusive (the "Class Period").
The Complaint alleges that iMergent violated federal securities laws by issuing misleading information pertaining to its StoresOnline, Inc. subsidiary. iMergent concealed the fact that its sales practices violated the laws of many of the states it operates in and the inability to collect on its installment contracts with its clients.
On February 22, 2005, the Texas Attorney General filed suit against the Company, its Chairman, Donald L. Danks ("Danks"), and its President, Brandon B. Lewis, alleging the Company's wholly owned subsidiary, StoresOnline.com, was marketing defective storefront software that falsely promised outsized returns on a customer's investment.
On February 25, 2005, Danks admitted in an investment conference that the Company had been selling the software packages to customers with subprime credit, many of which did not even meet the Company's own credit requirements. Many of these customers had little success with iMergent's software and then failed to uphold their contractual obligations, which resulted in only 56% recovery of the purchase price through the subprime customers on installment contracts.
The market reacted negatively to this news, and iMergent's stock plummeted to below $12 per share on March 1, 2005. The Company's shares currently trade at less than half of the price reached during the Class Period. Additionally, while the stock was artificially inflated, the Company's executives sold more than $6.5 million worth of their own shares.
If you acquired the securities of iMergent, Inc. during the Class Period and meet certain legal requirements, you may, no later than May 9, 2005, move for appointment as lead plaintiff on behalf of the proposed class.
If you are a member of this class and would like to take action in this suit, please visit Baron & Budd online (http://www.securitiesactions.com ). Information on your legal rights can be obtained by contacting the law firm of Baron & Budd, P.C.
About Baron & Budd, P.C.
Since 1977, the law firm of Baron & Budd, P.C. has championed the rights of people and communities harmed by corporate misconduct. With over 70 attorneys and offices in Texas, Illinois, Ohio, Louisiana, and New York, Baron & Budd enjoys a national reputation as a leader of the plaintiff's bar. The firm represents individuals with mesothelioma and other diseases caused by asbestos; leukemia caused by benzene; injuries caused by other toxic substances and unsafe pharmaceuticals; water authorities seeking clean-up costs for drinking water contamination; securities investors defrauded by corporate wrongdoing; and consumers in class actions. For more information on the firm, call 1-800-222-2766 or visit www.baronandbudd.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca