HARTFORD, Conn., April 5, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Eastern District of Virginia on behalf of all persons who purchased the common stock of TNS ("TNS" or the "Company") (NYSE:TNS) pursuant to the Company's secondary offering on or about September 16, 2005 (the "Secondary Offering").
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially misleading statements in connection with the Secondary Offering. Specifically, TNS filed a Registration Statement in which defendants failed to disclose several "material changes" to TNS's continuing operations including the following: (i) contrary to earlier statements, an agreement that TNS had with the Pepsi Bottling Group (the "Pepsi Contract") had been delayed beyond August 7, 2005; (ii) at the time of the Secondary Offering, TNS was generating less revenues and earnings than it had anticipated from its contract with the Royal Bank of Scotland; and (iii) at the time of the Secondary Offering, the Company's International Services Division was experiencing declining revenues because of unfavorable exchange rates.
On October 20, 2005, TNS announced its financial results for the third quarter of 2005 and noted that it had missed its top-line revenue guidance because of delays in the Company's Pepsi Contract, the impact of unfavorable exchange rates and a reduction in transaction volume from RBS. Following this announcement, shares of TNS common stock fell 25%. Then, on February 22, 2006, the Company reported declining financial results for the fourth quarter of 2005 and attributed the decline to a further delay associated with the Pepsi Contract and the continued impact of unfavorable exchange rates. On this news, shares of TNS declined an additional 19%.
If you are a member of the class, you may, no later than June 5, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.