Geller Rudman Announces Class Action Lawsuit Against the
Descartes Systems Group Inc. on Behalf of Investors
NEW YORK, May 19 /PRNewswire/ -- The Law Firm of Geller Rudman, PLLC announced
today that a class action lawsuit has been filed in the United States District
Court for the Southern District of New York on behalf of purchasers of The
Descartes Systems Group Inc. ("Descartes" or the "Company") common stock
during the period between June 4, 2003 and May 6, 2004, inclusive (the "Class
Period"). A copy of the complaint filed in this action is available from the
Court, or can be viewed on the firm's website at
http://www.geller-rudman.com/view_case.asp?cID=289 .
The complaint charges that Descartes, Manuel Pietra and Colley Clarke violated
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5
promulgated thereunder, by issuing a series of material misrepresentations to
the market between June 4, 2003 and May 6, 2004, about its financial condition,
thereby artificially inflating the price of Descartes' stock. 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 had
materially inflated its financial results; (2) that the Company maintained
insufficient reserves for doubtful accounts, in light of the fact that the
Company knew and/or recklessly disregarded the fact that it was having extreme
difficulties in collecting receivables especially in the Asia- Pacific Region;
(3) that the Company had overstated its revenues by at least $1.1 million by
recognizing revenues from a significant contract with a customer in China that
was impaired by regulatory action of the Chinese Government, a fact the Company
knew and/or recklessly disregarded; (4) that the Company had failed to take
sufficient write downs of assets that it had determined to be impaired; (5)
that the Company lacked adequate internal controls and was therefore unable to
ascertain the true financial condition of the Company; and (6) that as a
result, the value of the Company's net income and financial results were
materially overstated at all relevant times.
On May 6, 2004, after the markets had closed, Descartes announced that its
revenues and loss per share for the three months ended April 30, 2004 will be
materially below the expectations set forth in its March 10, 2004 press
release. News of this shocked the market. Shares of Descartes fell $0.76 per
share, or 38.97 percent, to close at $1.19 per share on May 7, 2004.
If you bought Descartes common stock between June 4, 2003 and May 6, 2004,
inclusive, and you wish to serve as lead plaintiff, you must move the Court no
later than July 19, 2004. If you are a member of this class, you can join this
class action online at http://www.geller-rudman.com/ . Any member of the
purported class may move the Court to serve as lead plaintiff through Geller
Rudman or other counsel of their choice, or may choose to do nothing and remain
an absent class member.
Geller Rudman, PLLC is a national law firm that represents investors and
consumers in class action and corporate governance litigation. It is one of
the country's premier firms in the area of securities fraud, with in-house
finance and forensic accounting specialists and extensive trial experience. Since its founding, Geller Rudman, PLLC has grown to become one of the most
respected and successful firms representing investors and consumers in class
action litigation. The firm came of age under the client focused realities of
the Private Securities Litigation Reform Act of 1995, which provided new
opportunities for institutional investors to assume leadership in combating
securities fraud.
The firm's lawyers have achieved substantial recoveries for aggrieved investors
and consumers in class action lawsuits prosecuted in state and federal courts
throughout the nation. Geller Rudman, PLLC maintains a widely recognized
reputation for excellence, as courts have repeatedly appointed the firm to
major positions in intricate multi-district or consolidated litigations. In
this regard, Geller Rudman, PLLC has successfully pursued hundreds of class
action lawsuits, has taken a lead role in numerous complex litigations on
behalf of defrauded investors and consumers and has been responsible for
billions in recoveries as well as landmark corporate governance changes. The
firm maintains offices in Boca Raton and New York.
If you have any questions about how you may be able to recover for your losses,
or if you would like to consider serving as one of the lead plaintiffs in this
lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's
website at http://www.geller-rudman.com/ .
Contact: GELLER RUDMAN, PLLC
Samuel H. Rudman, Esq. or David A. Rosenfeld, Esq.
Client Relations Department:
200 Broadhollow, Suite 406
Melville, NY 11747
631-367-7100
Toll Free: 1-877-992-2555
Fax: 1-631-367-1173
E-mail: DATASOURCE: Geller Rudman, PLLC CONTACT: Samuel H. Rudman, Esq. or David A. Rosenfeld, Esq., both of Geller Rudman, PLLC, +1-877-992-2555, or fax, +1-631-367-1173, or Web site: http://www.geller-rudman.com/ http://www.geller-rudman.com/view_case.asp?cID=289
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