Case Page

 

Case Status:    DISMISSED    
On or around 02/25/2010 (Court's order of dismissal)

Filing Date: December 15, 2008

According to a law firm press release, the Complaint charges Integral Systems and certain of its executive officers with violations of federal securities laws. Among other
things, plaintiff claims that defendants' material omissions and dissemination of materially false and misleading statements concerning the Company's business, operations and prospects, caused Integral Systems' stock price to become artificially inflated, inflicting damages on investors. Integral Systems builds satellite ground systems and equipment for command and control, integration and test, data
processing, and simulation.

The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements were materially false and misleading. Specifically, the Complaint alleges that defendants' public statements were false and misleading or failed to disclose or indicate the following: (1) that the Company improperly recognized revenue; (2) that as a result, the Company misstated its financial results during the Class Period; (3) that the Company's
financial results were not prepared in accordance with Generally Accepted Accounting Principles; (4) that the Company lacked adequate internal and financial controls; and (5) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.

On December 11, 2008, Integral Systems shocked investors when it revealed that the unaudited financial statements of the Company for the interim periods ended December 31, 2007, March 30, 2008 and June 30, 2008 should no longer be relied upon due to an error in the accounting treatment for certain transactions with respect to the timing of the recognition of revenue between periods. The Company further disclosed that, as a result, the Company would restate its previously filed financial statements for those interim quarterly periods in fiscal year 2008. The Company estimated that the net impact of the adjustments for the first three quarters of 2008 would result in a decrease of approximately $10 million in revenues, a decrease of approximately $3 million in gross profit, a decrease of approximately $4 million in
operating income, and a decrease of approximately $0.13 in earnings per share. On this news, shares of Integral Systems declined $6.38 per share, or 28.61%, to close on December 11, 2008 at $15.92 per share, on unusually heavy volume.

On February 17, 2009, a [proposed] order granting motion of the Ulrich group for appointment as lead plaintiff and approval of lead plaintiffs selection of co-lead counsel was entered into the court’s record.

On July 21, 2009, an order was granted dismissing that the Complaint without prejudice in accordance to the provisions of Rule 4(m) of the Federal Rules of Civil Procedures.


On August 24, 2009, an order on plaintiffs' motion for relief from judgment was granted. The
July 21, 2009 Order of this Court was thereby vacated and the complaint filed therein was reinstated. Also, an order granting motion of the ulrich group for appointment as lead plaintiff and approval of the lead plalintiff's selection of co-lead counsel was entered into the court record.

On September 21, 2009, an amended class action complaint for violations of the federal securities laws against all defendants, was filed by the Plaintiffs.

On February 25, 2010, an order on the Defendant’s motion to dismiss the Plaintiff’s amended class action complaint was granted and judgment for costs were entered in favor of Defendants and the case was closed.

COMPANY INFORMATION:

Sector: Technology
Industry: Software & Programming
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: ISYS
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. Maryland
DOCKET #: 08-CV-03387
JUDGE: Hon. Roger W Titus
DATE FILED: 12/15/2008
CLASS PERIOD START: 04/28/2008
CLASS PERIOD END: 12/10/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 · info@glancylaw.com
No Document Title Filing Date
COURT: D. Maryland
DOCKET #: 08-CV-03387
JUDGE: Hon. Roger W Titus
DATE FILED: 09/21/2009
CLASS PERIOD START: 02/04/2008
CLASS PERIOD END: 12/10/2008
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Cohen Milstein Sellers & Toll PLLC (Washington DC)
    1100 New York Avenue, N.W., Suite 500, West Tower, Cohen Milstein Sellers & Toll PLLC (Washington DC), DC 20005
    202.408.4600 202.408.4600 ·
  2. Glancy Binkow & Goldberg LLP (Los Angeles)
    1801 Ave. of the Stars, Suite 311, Glancy Binkow & Goldberg LLP (Los Angeles), CA 90067
    310.201.915 310. 201-916 · info@glancylaw.com
  3. Law Offices of Howard G. Smith
    3070 Bristol Pike, Suite 112, Law Offices of Howard G. Smith, PA 19020
    215.638.4847 215.638.4867 ·
No Document Title Filing Date