According to a press release dated March 25, 2009. The Complaint charges that Insight and certain of its officers and directors violated federal securities laws by making materially false statements. Specifically, Defendants failed to disclose the following: (i) Insight was improperly accounting for trade credits; (ii) the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles; (iii) Insight lacked adequate internal and financial controls; and (iv) as a result, the Company's financial statements were materially false and misleading.
On February 9, 2009, Insight revealed that it would restate its previously reported earnings as a result of its historical accounting treatment of aged trade credits. Insight also announced that it expects to restate financial statements included in the Company's most recently filed Annual Report on Form 10-K, for the year ended December 31, 2007, and in the Quarterly Reports on Form 10-Q for the first three quarters of fiscal year 2008. On this news, shares of Insight fell $2.85 to close at $3.05 per share.
On June 12, 2009, the Plaintiff, pursuant to Fed. R. Civ. P. Rule 41(a)(1), voluntarily dismissed action without prejudice.