PHILADELPHIA, July 29, 2002 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was filed on July 26, 2002, in the United States District Court for the District of Arizona, on behalf of all persons and entities who purchased or otherwise acquired the common stock of Insight Enterprises, Inc. (Nasdaq:NSIT) ("Insight" or the "Company"), between April 26, 2002 and July 17, 2002, inclusive (the "Class Period").
The action, numbered 02-CV- 1407, is pending in the United States District Court, District of Arizona, located at 1400 U.S. Courthouse, 230 N. First Avenue, Phoenix, Arizona 85025 against defendants Insight Enterprises, Inc., Eric J. Crown, Timothy A. Crown, and Stanley Laybourne. The Honorable Stephen McNanee is presiding over the case. A copy of the Complaint is available from the Court or the Law Offices Bernard M. Gross, P.C. Please visit our website at http://www.bernardmgross.com or contact us by phone at 866-561-3600 (toll free) or by E-mail at susang@bernardmgross.com.
The complaint charges Insight, Eric J. Crown -- co-founder of Insight, Chairman of the Board of Directors and member of the Executive Committee of the Board of Directors., Timothy A. Crown -- co-founder of Insight, Chief Executive Officer, Director, and member of the Executive Committee of the Board of Directors, and Stanley Laybourne -- Chief Financial Officer, Secretary, Treasurer and Director with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5, by issuing a series of materially false and misleading statements to the market during the Class Period. On April 25, 2002, after the close of the market, defendants issued Insight's First Quarter 2002 earnings press release for the three months ended March 31, 2002 and held a conference call with analysts. The press release touted the company's accomplishments. During the conference call on April 25, 2002, defendants stated that Insight expected to see substantial growth in sales in the Second Quarter of 2002, the three months which began April 1, 2002, to between $720 million and $760 million with Second Quarter earnings growing to between $0.31 and $0.35 per share. The response from the market to defendants' statements was dramatic. The per share price of Insight common stock jumped 26% from a close of $21.30 on April 25, 2002 to a close of $26.46 on April 26, 2002. Unbeknownst to investors, however, Insight, already one month into the Second Quarter of 2002, was suffering from undisclosed adverse facts which were negatively impacting its revenues and profits and which would cause it to reverse it sequential growth pattern and report earnings per share for the Second Quarter that, at best, would be flat compared to the First Quarter reported in 2002 earnings per share and significantly below the $0.31 to $0.35 cents defendants told the market they were expecting for the Second Quarter of 2002. The truth regarding Insight was not fully disclosed until July 17, 2002, when defendants finally revealed that Insight anticipated Second Quarter earnings per share in the range of only $0.26 and $0.29, flat with the prior year's quarter and the First Quarter of 2002. The press release blamed the lower results on operating losses in its UK operations caused by reduced sales and a lower gross profit percentage. The press release also stated that the president and chief operating officer of the UK operations had resigned. In response to the surprise negative announcement on July 17, 2002, after the close of the market, the price of Insight common stock dropped precipitously, falling from $23.74 per share on July 17, 2001 to close at $13.36 per share on July 18, 2002, a decline of almost 44%, on volume of 12 million Insight shares.
Plaintiff seeks to recover damages on behalf of Class members and, are represented by the law firm of Law Offices Bernard M. Gross, P.C. which has significant experience and expertise in prosecuting class actions.
If you bought the common stock of Insight Enterprises between April 26, 2002 and July 17, 2002, you may, no later than September 27, 2002, 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. If you wish to discuss this action or have any questions concerning this Notice or rights or interests with respect to these matters, please contact:
Law Offices Bernard M. Gross, P.C.
Deborah R. Gross, Esquire
Susan Gross, Esquire
1515 Locust Street, Second Floor
Philadelphia, PA 19102
Telephone: 866-561-3600 (toll-free)
or 215-561-3600
E-mail: susang@bernardmgross.com or
debbie@bernardmgross.com.
Website: http://www.bernardmgross.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.