CHICAGO, April 21, 2003 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that a class action lawsuit is pending in the United States District Court for the Northern District of Texas on behalf of purchasers of the securities of i2 Technologies, Inc. (Nasdaq:ITWOE) (formerly ITWO) ("i2" or the "Company") between April 18, 2000 and January 24, 2003, inclusive ("Class Period").
It has been alleged that i2, Sanjiv S. Sidhu, Gregory A. Brady, William M. Beecher, Nancy F. Brigham and David C. Becker violated the federal securities laws by issuing a series of materially false and misleading statements to the market, which had the effect of artificially inflating the market price of i2's securities.
Specifically, the Complaint alleges that throughout the Class Period, in press releases and in filings with the SEC, i2 reported increasing revenues and "record" financial results. These statements were each materially false and misleading when made because they failed to disclose and/or misrepresented the following adverse facts, among others: (i) that the Company had materially overstated its revenue by improperly recognizing revenue on certain customer contracts and (ii) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company. As a result of the foregoing, i2's financial statements issued during the Class Period were materially false and misleading.
On January 27, 2003, before the opening of trading, i2 shocked the market when it announced that it would re-audit its financial statements for the years ended December 31, 2000 and 2001 because of "recent information developed during the audit committee's ongoing investigation of certain allegations regarding the company's revenue recognition with respect to certain customer contracts and its financial reporting for those years." The Company further reported that it had notified the SEC of these allegations, and that the SEC staff has begun an informal inquiry into these matters. The Company also advised investors that they should not rely on the financial information contained in its annual reports on Form 10-K for the years ended December 31, 2000 and 2001 or in its quarterly reports on Form 10-Q for the quarters ended March 31, 2000 through September 30, 2002.
Common shares of i2 plunged from a close of $1.26 on January 24, 2003 to a close of $0.92 on January 27, 2003, the next trading day, resulting in a single-day decline of more than 26%, on very heavy trading volume. Reportedly, on or about April 7, 2003, the Nasdaq stock market furnished i2 with a notice of intent to delist its common stock, stating that the Company's inability to timely file its annual report on Form 10-K violates its rules.
Much Shelist is currently investigating these claims. If you wish to discuss your rights and interests, or if you have information relevant to the lawsuit, you may contact Carol V. Gilden or Michael E. Moskovitz at Much Shelist Freed Denenberg Ament & Rubenstein, P.C., by calling a toll-free number 1-800-470-6824, or by sending an e-mail to investorhelp@muchshelist.com. Your e-mail should refer to i2.
If you purchased i2 securities during the Class Period and if you meet certain other legal requirements, you may file a motion in the court where the lawsuit has been filed to serve as a lead plaintiff. You must file your motion no later than May 27, 2003.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States. The firm has successfully prosecuted cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca