NEW YORK, April 10, 2003 (PRIEMZONE) -- A securities class action lawsuit was commenced in the United States District Court for Northern District of Texas, on behalf of all persons who purchased or acquired i2 Technologies, Inc. (Nasdaq:ITWO) ("i2" or the "Company") securities (the "Class") between April 18, 2000 and January 24, 2003, inclusive (the "Class Period"). A copy of the complaint is available from the Court or can be viewed on the Wechsler Harwood web site at: www.whesq.com.
Plaintiff alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated under Section 10(b), by issuing a series of material misrepresentations to the market during the Class Period, thereby artificially inflating the price of i2 securities. Plaintiff alleges that Defendants repeatedly issued financial results that were materially false and misleading when made because they failed to disclose and/or misrepresented the following adverse facts, among others: (i) the Company had materially overstated its revenue by improperly recognizing revenue on certain customer contracts; (ii) the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (iii) as a result of the foregoing, the Company's financial statements issued during the Class Period were materially false and misleading.
On January 27, 2003, defendants announced that i2 would re-audit its financial statements for the years ended December 31, 2000 and 2001 due to "recent information developed during the audit committee's ongoing investigation of certain allegations regarding the company's revenue recognition with respect to certain customer contracts and its financial reporting for those years." Defendants further reported that i2 had notified the SEC of these allegations, and that the SEC staff has begun an informal inquiry into these matters. After this news, i2 common stock fell from a close of $1.26 per share on January 24, 2003 to a close of $0.92 per share on January 27, 2003, the next trading day, amounting to a single-day decline of more than 26% on very heavy trading volume.
If you are a member of the class described above, you may, not later than May 27, 2003, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 David Leifer, Wechsler Harwood Shareholder Relations Department: dleifer@whesq.com, extension 251.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca