The law firm of Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has filed a lawsuit on behalf of its client and on behalf of other similarly situated purchasers of the securities of Intelligroup, Inc. (Nasdaq:ITIGE) ("Intelligroup" or the "Company") from May 1, 2001, through September 24, 2004, inclusive (the "Class Period"), in the United States District Court for the District of New Jersey.
The complaint names as defendants: Intelligroup; Arjun Valluripalli a.k.a. Arjun Valluri, the Company's Chief Executive Officer; Nicholas Visco, the Company's former Senior Vice President of Finance and Administration and Chief Financial Officer from the beginning of the Class Period until November 2003; Edward Carr, the Company's Chief Financial Officer from November 2003 to April 2004; and David J. Distel, the Company's Chief Financial Officer from April 2004 to the end of the Class Period. The Complaint alleges that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder, including U.S. Securities and Exchange Commission ("SEC") Rule 10b-5.
Specifically, the complaint alleges that, throughout the Class Period, Intelligroup publicly boasted a strong financial performance, while in reality, the Company's revenues, net income and earnings were materially misstated as a direct result of Intelligroup's improper accounting practices and inadequate internal controls.
On August 11, 2004, Intelligroup announced that its independent auditors, Deloitte & Touche LLP, had resigned from serving as Intelligroup's independent registered accounting firm effective following the conclusion of its review of the Company's interim financial information for the second quarter of 2004. Then on September 24, 2004, after the market closed, Intelligroup announced that it would restate its previously issued financial statements filed on Form 10-K for the years ended December 31, 2003, 2002 and 2001 and filed on Form 10-Q for the quarterly periods beginning January 1, 2001 to date. In response to the news, the value of Intelligroup's stock fell 32% to close at $1.13 on September 27, 2004, the following trading day.
If you purchased or acquired Intelligroup securities during the Class Period, you may, no later than December 13, 2004, move the court to be appointed as Lead Plaintiff. There are certain legal requirements to serve as Lead Plaintiff.
Any member of the purported class may move the court to serve as Lead Plaintiff through counsel of their choice or may choose to remain an absent class member. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as Lead Plaintiff. To be a member of the class, you need not take any action at this time.
Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York and Chicago, and is active in major litigation pending in federal and state courts throughout the nation. You may visit the firm's website at www.cmht.com.
The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total in the billions of dollars.
If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following:
Steven J. Toll, Esq.
Elena Takacs
Cohen, Milstein, Hausfeld & Toll, P.L.L.C.
1100 New York Avenue, N.W.
West Tower - Suite 500
Washington, D.C. 20005
Telephone: 888-240-0775 or 202-408-4600
E-mail: stoll@cmht.com or etakacs@cmht.com