NEW YORK, March 21, 2005 (PRIMEZONE) -- A class action securities fraud lawsuit has been filed by Goodkind Labaton Rudoff & Sucharow LLP in the United States District Court for the District of Utah, on behalf of persons who purchased or otherwise acquired the publicly traded securities of iMergent Inc. ("iMergent" or the "Company") (AMEX:IIG) between November 30, 2004 and February 25, 2005, inclusive, (the "Class Period"). The lawsuit was filed against iMergent, Brandon B. Lewis, Robert M. Lewis, Donald L. Danks, David L. Rosenvall, David T. Wise, Peter Fredericks, and Thomas Scheiner ("Defendants"). 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.
If you are a member of this class you can view a copy of the complaint and join this class action online at http://www.glrslaw.com/get/?case=iMergent.
During the Class Period, the Defendants failed to disclose the truth of iMergent's sales practices, including that its wholly-owned subsidiary, StoresOnline.com, was violating numerous state laws against deceptive business practices. Specifically, the Company was selling faulty internet-storefront software to customers for approximately $500 by virtue of misrepresentations, then demanding several thousand dollars more for "expert advice" when the customers complained the software did not work.
The defendants failed to disclose that iMergent had been subject to a lawsuit and cease and desist order by the State of Washington in early 2004 for similar misconduct. On February 22, 2005, it was disclosed that the Texas Attorney General had filed suit against the Company. On February 25, 2005, it was also disclosed that the Company had been loaning money to customers with sub-prime credit.
As the market digested this news, shares of iMergent stock fell dramatically in value from more than $25 per share on February 9, 2005 to below $12 per share on March 1, 2005, or approximately 50%. Those investors who purchased or acquired iMergent stock during the Class Period are alleged to have purchased those shares at artificially inflated prices, as a result of the Defendants' false and misleading statements and omissions during the Class Period, and are seeking damages.
Goodkind Labaton is one of the country's premier national law firms that represent individual and institutional investors in class action, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts. Goodkind Labaton was recently ranked fourth in total recoveries in 2003 among the top 50 plaintiffs' law firms by Institutional Shareholder Services (ISS), the world's leading provider of proxy and corporate governance services. Notably, Goodkind Labaton recovered over half a billion dollars for its clients in the last two years.
If you bought iMergent securities between November 30, 2004 and February 25, 2005, inclusive, you may qualify to serve as a Lead Plaintiff. Lead Plaintiff papers must be filed with the court no later than May 9, 2005. If you would like to consider serving as a lead plaintiff or have any questions about the lawsuit, please contact one of our representatives or Christopher Keller, Esq. at 800-321-0476.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca