SAN DIEGO and CALABASAS,
Calif., Aug. 4, 2014
/PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP
announces that an investor of NetSol Technologies, Inc. (NASDAQ:
NTWK) has filed a federal securities fraud class action complaint
in the U.S. District Court for the Central District of California, Western Division. The complaint
alleges that the company and certain of its officers and directors
violated the Securities Exchange Act of 1934 between November 12, 2009 and November 8, 2013 (the "Class Period"). NetSol
designs, develops, markets, and exports software products primarily
to the automobile finance and leasing, banking, healthcare, and
financial services industries worldwide.
NetSol Is Accused of Misrepresenting Its Financial
Condition
According to the complaint, shares of NetSol dropped 30%, to
close at $5.23 on November 8, 2013, following the release of
NetSol's operations and financial conditions for the quarter ended
September 30, 2013. In that release,
the company reported increased expenses and materially decreased
earnings and revenue and a bleak financial outlook. The complaint
alleges that prior to the November 8,
2013 press release, the company had previously reported
strong financial conditions and touted its potential for growth,
specifically in relation to its next generation of Financial Suite
(NFS) products. Yet, the complaint further alleges that: (i)
NetSol's next generation product was not expected to be completed
when the company had originally stated; (ii) NetSol's customers
were not planning to replace the old legacy system with the new
system; (iii) there was no reasonable basis for stating that
development of the next generation of NFS would change the
landscape for NetSol and increase its demand; and (iv) all internal
data pointed to a continued business decline, not the growth the
company represented.
NetSol Investors Are Encouraged to Contact Shareholder
Rights Law Firm Robbins Arroyo LLP
If you invested in NetSol and would like to discuss your
shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003,
DDonahue@robbinsarroyo.com, or via the information form on the
firm's shareholder rights blog:
www.robbinsarroyo.com/shareholders-rights-blog/netsol-technologies-inc.
Robbins Arroyo LLP is a nationally recognized leader in
securities litigation and shareholder rights law. The firm
represents individual and institutional investors in shareholder
derivative and securities class action lawsuits, and has helped its
clients realize more than $1 billion
of value for themselves and the companies in which they have
invested.
Attorney Advertising. Past results do not guarantee a
similar outcome.
Contact:
Darnell R. Donahue
Robbins Arroyo LLP
DDonahue@robbinsarroyo.com
(619) 525-3990 or Toll Free (800) 350-6003
www.robbinsarroyo.com
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SOURCE Robbins Arroyo LLP