NEW YORK, Aug. 22, 2014 (GLOBE NEWSWIRE) -- Pomerantz LLP has filed a class action lawsuit against NetSol Technologies, Inc. ("NetSol" or the "Company") (Nasdaq:NTWK) and certain of its officers. The class action, filed in United States District Court, Central District of California, Western Division, and docketed under 14-cv-06084, is on behalf of a class consisting of all persons or entities who purchased NetSol securities between November 12, 2009 and November 8, 2013, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
If you are a shareholder who purchased NetSol securities during the Class Period, you have until September 23, 2014 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
NetSol designs, develops, markets, and exports software products primarily to the automobile finance and leasing, banking, healthcare, and financial services industries worldwide. It also provides system integration, consulting, and IT products and services. The Company was founded in 1997 and is headquartered in Calabasas, California.
The Complaint alleges that throughout the Class Period, Defendants issued materially false and/or misleading statements because: (i) NetSol's next generation product was not expected to be completed when promised by the Company; (ii) serious interest in NetSol's next generation solution had not been expressed by relevant potential customers; (iii) NetSol was not experiencing a growing interest in its next generation NFS product, and the product was not ready for testing at customer sites; (iv) NetSol did not expect future growth through increased revenues from both the current version and the next generation of NFS; (v) there was no reasonable basis for stating that development of the next generation of NFS would change the landscape for NetSol and increase both demand and the market; (vi) NetSol did not have reasonable basis for stating that its target customers who were still using old systems for maintaining their lease and finance portfolios were planning to replace their legacy systems or that NetSol was in a good position to tap new business from these companies; and (vii) all internal data pointed to a continued business decline; not "growth and strength across the business" as represented by the Company.
On November 8, 2013, NetSol issued a press release announcing results of operations and financial conditions for the quarter ended September 30, 2013. It disclosed materially increased expenses and materially decreased earnings and revenue, as well as a bleak financial outlook.
On the news, shares in NetSol fell $2.25, or almost 30%, on extremely heavy trading volume, to close at $5.23 on November 8, 2013.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, 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.