NEW YORK, March 7, 2008 (PRIME NEWSWIRE) -- The Brualdi Law Firm P.C. announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of all purchasers of common stock of TeleTech Holdings, Inc. (Nasdaq:TTEC) between February 8, 2007 and November 8, 2007, inclusive and pursuant or traceable to the Company's March 30, 2007 Secondary Public Offering (the "SPO" or the "Offering") (the "Class Period").
No class has yet been certified in the above action. If you are a member of the proposed Class, you may, on or before March 25, 2008, ask the Court to allow you to serve as lead plaintiff for the proposed Class. To serve as a lead plaintiff, you must satisfy certain legal requirements. In making your decision, you should take into account that those with large financial losses resulting from the alleged federal securities law violations are given preference in being appointed lead plaintiff.
To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Tali Leger, Director of Shareholder Relations at The Brualdi Law Firm P.C., 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1187 or (212) 952-0602, by email to tleger@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com/
The Complaint charges TeleTech and certain of its officers and directors with violations of the Securities Act of 1933 and the Securities Exchange Act of 1934. TeleTech is a provider of business process outsourcing solutions. It supports approximately 300 business process outsourcing programs serving approximately 135 global clients in the automotive, communications, financial services, government, healthcare, retail, technology and travel and leisure industries. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company's financial statements were overstated; (2) that specifically, the Company improperly accounted for compensation expenses and in doing so, backdated tens or hundreds of millions of dollars in options granted to executives between 1999 and 2007; (3) that the financial statements (including those presented in the Registration Statement), were overstated because the Company under- reported its employment taxes and compensation expenses, as well as its reserves, and over-reported its earnings and gross margins and failed to make the proper adjustments to operational and financial reports; (4) that the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles; (5) that the Company lacked adequate internal and financial controls; and (6) that, as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
On March 30, 2007 the Company conducted its SPO. In connection with the SPO, the Company filed a Registration Statement and Prospectus (collectively referred to as the "Registration Statement") with the SEC. As part of the SPO, Defendant Kenneth Tuchman registered as much as 5.75 million shares of his privately owned TeleTech common stock at $36.50 per share. Upon the completion of the SPO (which closed on April 4, 2007 after the underwriters exercised their Green Shoe shares), Defendant Tuchman profited handsomely to the tune of nearly $210 million. Following this, the Company continued to paint a picture of sound financial health and markets. However, on November 8, 2007, TeleTech shocked investors when it disclosed that it was reviewing its equity-based compensation practices and would likely have to restate previously issued financial statements, possibly going back to 1999. The Company concluded that financial statements for the periods 1999 through the second quarter of 2007 should not be relied upon. Upon the release of this news, shares of the Company's stock declined $2.18 per share, or 9.64 percent, to close on November 9, 2007 at $20.43 per share, on unusually heavy trading volume.