NEW YORK, Jan. 11, 2012 (GLOBE NEWSWIRE) -- Pomerantz Haudek Grossman & Gross LLP is investigating claims on behalf of investors who purchased American Depositary Shares ("ADSs") of Camelot Information Systems, Inc. ("Camelot" or the "Company") between July 21, 2010 and August 17, 2011 inclusive (the "Class Period"), including those who acquired Camelot ADSs pursuant or traceable to the Company's Registration Statements and Prospectuses issued in connection with its July 21, 2010 Initial Public Offering ("IPO") and December 10, 2010 Secondary Offering (collectively, the "Offerings"). Such investors are advised to contact Rachelle R. Boyle at rrboyle@pomlaw.com or 888-476-6529, ext. 350.
The investigation concerns whether Camelot and certain of its officers and directors and the underwriters of the Offerings issued materially false and misleading statements regarding the Company's business practices and financial results, in violation of the Securities Act of 1933 and the Securities Exchange Act of 1934.
The Company allegedly failed to disclose negative trends in Camelot's business. Specifically, the Company failed to disclose that: A) the Company's IT professionals were not a competitive advantage to the Company and many were dissatisfied with Camelot, which would adversely affect Camelot's ability to retain its customers; B) Camelot was suffering from undisclosed attrition of employees, which was having a negative impact on the company's ability to attract new customers; C) Camelot did not have the large numbers of highly trained professionals at its disposal that it had represented; and (D) the Company's contract with its most important customer, IBM, was not as solid as represented, and would not be renewed on the same terms.
On August 15, 2011, Seeking Alpha published an article questioning several key components of Camelot's business. On August 18, 2011, Camelot issued a press release announcing its second quarter 2011 unaudited financial results, including lower-than-expected guidance for fiscal 2011. On this news, Camelot's ADSs dropped $2.24 per share to close at $6.32 per share on August 18, 2011, a one-day decline of 26%.
The Pomerantz Firm, with offices in New York, Chicago, and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.