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Case Status:    DISMISSED    
On or around 11/13/2007 (Date of order of final judgment)

Filing Date: October 12, 2004

According to a press release dated November 14, 2007, a federal judge yesterday dismissed a securities fraud class-action lawsuit against Edison-based Intelligroup, ruling the complaint alleging improper accounting failed to set forth viable claims. U.S. District Court Judge Garrett Brown issued a 195-page opinion yesterday throwing out investors' third amended complaint. The judge refused to allow a fourth revised lawsuit to be filed. Investors sued the consulting company and several of its executives in 2004, soon after Intelligroup said it would restate years of financial statements. Securities regulators investigated the company but brought no charges.

On December 20, 2006 the judge granted defendants' motions to dismiss the second complaint, but granted 30 days leave to plaintiffs to file a third complaint. Plaintiffs did so on January 25, 2007. The defendants subsequently filed a third round of motions for dismissal on March 5, 2007; the judge has yet to rule on these motions.

According to the Company’s FORM 10-Q for the quarterly period ended September 30, 2006, on February 10, 2006, prior to the hearing on Defendants’ motions to dismiss, Plaintiffs filed a second amended consolidated complaint. Defendants’ motions to dismiss the second amended consolidated complaint are currently pending before the District of New Jersey. No trial date has been scheduled and no discovery has taken place.

As disclosed by the same SEC filing, on or about October 12, 2004, the first of six class action lawsuits was filed, on behalf of a purported class of investors who purchased the Company’s common stock, against the Company and former officers Arjun Valluripalli, Nicholas Visco, Edward Carr and David Distel (“Defendants”) in the United States District Court, District of New Jersey (“District of New Jersey”). In August 2005, the United States District Court, District of New Jersey consolidated the six class actions (the “Shareholder Class Action”) and appointed a lead plaintiff. Plaintiffs subsequently dropped Mr. Distel and Mr. Carr from the Shareholder Class Action, failing to name either of them as a defendant in the amended consolidated complaint filed on or about October 10, 2005. The Shareholder Class Action generally alleges violations of federal securities laws, including allegations that the Defendants made materially false and misleading statements regarding the Company’s financial condition and that the Defendants materially overstated financial results by engaging in improper accounting practices. The Class Period alleged is May 1, 2001 through September 24, 2004. The Shareholder Class Action generally seeks relief in the form of unspecified compensatory damages and reasonable costs, expenses and legal fees. On December 5, 2005, Defendants filed motions to dismiss the amended consolidated complaint.

The original complaint alleges that, throughout the Class Period, defendants issued numerous statements and filed quarterly and annual reports with the United States Securities and Exchange Commission regarding the Company's current financial performance and future earnings. As alleged in the complaint, these statements were materially false and misleading because defendants knew, but failed to disclose: (i) that Intelligroup was materially overstating its financial results by engaging in improper accounting practices. As detailed herein, Intelligroup has admitted that its prior financial reports are materially false and misleading as it announced that it is going to 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; (ii) that the Company lacked adequate internal controls and was therefore unable to ascertain its true financial condition; and (iii) that as a result of the foregoing, the values of the Company's revenues, net income and earnings before interest, taxes, depreciation, and amortization ("EBITDA") were materially overstated at all relevant times.

The complaint further alleges that on or around September 24, 2004, slightly over a month after its auditors resigned, the Company shocked the market when it issued a press release announcing its intention to 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. Upon this shocking news, shares of the Company's stock fell an additional $0.52 per share or almost 32% to close at $1.13 per share, on unusually heavy trading volume. Prior to the disclosure of these adverse facts, defendants Valluripalli and Visco sold their personally-held Intelligroup stock to the unsuspecting public thereby reaping almost $3 million in illicit proceeds.

COMPANY INFORMATION:

Sector: Technology
Industry: Computer Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: ITIG
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: D. New Jersey
DOCKET #: 04-CV-4980
JUDGE: Hon. John C. Lifland
DATE FILED: 10/12/2004
CLASS PERIOD START: 05/01/2001
CLASS PERIOD END: 09/24/2004
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Berman DeValerio Pease Tabacco Burt & Pucillo (MA)
    One Liberty Square, Berman DeValerio Pease Tabacco Burt & Pucillo (MA), MA 2109
    617.542.8300 617.230.0903 · info@bermanesq.com
  2. Goodkind Labaton Rudoff & Sucharow LLP
    100 Park Avenue, Goodkind Labaton Rudoff & Sucharow LLP, NY 10017
    212.907.0700 212.818.0477 · info@glrslaw.com
  3. Law Offices of Charles J. Piven, P.A.
    World Trade Center-Baltimore,401 East Pratt Suite 2525, Law Offices of Charles J. Piven, P.A., MD 21202
    410.332.0030 · pivenlaw@erols.com
  4. Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville)
    200 Broadhollow, Suite 406, Lerach Coughlin Stoia Geller Rudman & Robbins LLP (Melville), NY 11747
    631.367.7100 631.367.1173 · info@lerachlaw.com
  5. Lite, DePalma, Greenberg & Rivas, LLC (Newark)
    Two Gateway Center, 12th Floor, Lite, DePalma, Greenberg & Rivas, LLC (Newark), NJ 07102-5003
    973.623.3000 ·
  6. Schatz & Nobel, P.C.
    330 Main Street, Schatz & Nobel, P.C., CT 06106
    800.797.5499 860.493.6290 · sn06106@AOL.com
  7. Schiffrin & Barroway LLP
    3 Bala Plaza E, Schiffrin & Barroway LLP, PA 19004
    610.667.7706 610.667.7056 · info@sbclasslaw.com
  8. Stull, Stull & Brody (New York)
    6 East 45th Street, Stull, Stull & Brody (New York), NY 10017
    310.209.2468 310.209.2087 · SSBNY@aol.com
No Document Title Filing Date
COURT: D. New Jersey
DOCKET #: 04-CV-4980
JUDGE: Hon. John C. Lifland
DATE FILED: 02/10/2006
CLASS PERIOD START: 05/01/2001
CLASS PERIOD END: 09/24/2004
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC)
    1100 New York Avenue, N.W., Suite 500, West Tower, Cohen, Milstein, Hausfeld & Toll, P.L.L.C. (Washington, DC), DC 20005
    202.408.4600 202.408.4699 · lawinfo@cmht.com
  2. Kantrowitz, Goldhamer & Graifman, P.C.
    210 Summit Avenue, Kantrowitz, Goldhamer & Graifman, P.C., NJ 07645
    201-391-7000 201-307-1086 · kgg@kgglaw.com
  3. Lite, DePalma, Greenberg & Rivas, LLC (Newark)
    Two Gateway Center, 12th Floor, Lite, DePalma, Greenberg & Rivas, LLC (Newark), NJ 07102-5003
    973.623.3000 ·
  4. Trujillo, Rodriguez & Richards, LLC (Cherry Hill)
    20 Brace Road, Trujillo, Rodriguez & Richards, LLC (Cherry Hill), NJ
    ·
  5. Zimmerman, Levi & Korsinsky, LLP
    39 Broadway, Suite 1440, Zimmerman, Levi & Korsinsky, LLP, NY 10006
    212.363.7500 212.363.7171 ·
No Document Title Filing Date