Gainey McKenna & Egleston Announces They Have Filed a Class Action Lawsuit Against NetSol Technologies, Inc. -- NTWK
July 25 2014 - 10:00PM
Gainey McKenna & Egleston announces that they have filed a
class action lawsuit on behalf of their client and others in the
United States District Court for the Central District of California
on behalf of all persons who purchased or otherwise acquired the
securities of NetSol Technologies, Inc. ("NetSol" or the "Company")
(Nasdaq:NTWK) during the period between March 10, 2011 and November
8, 2013, inclusive (the "Class Period") (the "Class Period"). This
class action seeks to recover damages against Defendants for
alleged violations of the federal securities laws under the
Securities Exchange Act of 1934 (the "Exchange Act").
The Complaint alleges that throughout the Class Period,
Defendants issued materially false and/or misleading statements
because: (a) NetSol's next generation product was not expected to
be completed when promised by the Company; (b) serious interest in
NetSol's next generation solution had not been expressed by a few
global companies; (c) NetSol was not experiencing a growing
interest in its next generation NFS product, and the product was
not ready for testing at customer sites; (d) NetSol did not expect
future growth through increased revenues from both the current
version and the next generation of NFS; (e) there was no reasonable
basis for stating that development of the next generation of NFS
would change the landscape for NetSol and increase both demand and
the market; (f) NetSol did not have a reasonable basis for stating
that its target customers who were still using old systems for
maintaining their lease and finance portfolios were planning to
replace their legacy systems or that NetSol was in a good position
to tap new business from these companies; and (g) all internal data
pointed to a continued business decline; not "growth and strength
across the business" as represented by the Company.
Upon dissemination of the Company's November 8, 2013
disclosures, its stock dropped 30% from a closing price of $7.48 on
February 7, 2013 to a closing price $5.23 on February 8, 2013 in an
inordinate volume of trading.
If you wish to serve as lead plaintiff, you must move the Court
no later than September 23, 2014. A lead plaintiff is a
representative party acting on behalf of other class members in
directing the litigation. If you wish to join the litigation, or to
discuss your rights or interests regarding this class action,
please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq.
of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail
at tjmckenna@gme-law.com or gegleston@gme-law.com.
Attorney Advertising -- Prior results do not guarantee a similar
outcome with respect to any future matter. Please visit our website
at http://www.gme-law.com for more information about the firm.
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