Hagens Berman Reminds Investors of Deadline in SAIC Case Following News of Settlement
BERKELEY, Calif., March 16, 2012 /PRNewswire/ -- Hagens Berman today reminded investors that only 39 days remain before the lead plaintiff deadline in a securities class-action lawsuit filed against Science Applications International Corporation ("SAIC") (NYSE: SAI).
Investors who purchased shares of SAIC common stock between April 11, 2007, and Sept. 1, 2011, (the "class period"), have losses greater than $100,000 and desire to be a lead representative plaintiff can contact the firm for a consultation.
Investors can reach Partner Reed Kathrein, who is leading the firm's investigation, by calling (510) 725-3000. They can also contact Mr. Kathrein online by sending an email to SAIC@hbsslaw.com or by visiting www.hbsslaw.com/SAIC. The deadline to move the court for lead plaintiff is April 23, 2012.
The investigation centers around claims that SAIC failed to disclose possible overbilling in its role in New York City's "CityTime" project, part of a planned update to the city's employee payroll system.
A settlement has been announced under which SAIC will pay $500 million to settle claims that it received kickbacks from Technodyne, LLC, in exchange for CityTime subcontractor work.
"The settlement will help restore the government's losses, but investors are still waiting for their day in court," said Mr. Kathrein. "We will continue to investigate this matter to determine if SAIC failed to disclose facts that had a material impact on the stock price, including that it may have defrauded the City of New York."
Persons with knowledge that may help the investigation are also encouraged to contact the firm. The SEC recently finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The new rules protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery.
The class-action lawsuit was filed in the United States District Court for the Southern District of New York on Feb. 23, 2012. It alleges that SAIC's failure to disclose the possible overbilling issue in relation to CityTime made its statements to investors false or misleading in violation of the federal securities laws.
After SAIC released its financial results for the second quarter of 2012, executives held a conference call in which the company admitted it might be forced to subtract from its earnings on the CityTime project to reflect alleged overbilling. On the news, SAIC's stock price fell nearly 14 percent to just under $13.00.
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in 10 cities. The firm also represents whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. The firm's securities law blog is at www.meaningfuldisclosure.com.
Media Contact: Mark Firmani, Firmani + Associates, (206) 443 9357, Mark@firmani.com
SOURCE Hagens Berman LLPBack to top