NEW YORK, July 11, 2019 /PRNewswire/ -- Bernstein
Liebhard LLP, a nationally acclaimed investor rights law firm,
announces that a securities class action lawsuit has been filed on
behalf of shareholders that acquired shares of Intelligent
Systems Corporation ("INS" or the "Company") (NYSE: INS) between
January 23, 2019, and May 29, 2019, inclusive (the "Class Period"). The
lawsuit was filed in the United
States District Court for the Eastern District of
New York and seeks to recover
damages for INS investors under the Securities Exchange Act of
1934.
If you purchased INS securities during the Class Period,
and/or would like to discuss your legal rights and options,
please visit INS Shareholder Class Action Lawsuit or contact
Matthew Guarnero toll free at
(877) 779-1414 or MGuarnero@bernlieb.com.
According to the lawsuit, Defendants made materially false
and/or misleading statements, as well as failed to disclose
material adverse facts about the Company's business, operations,
and prospects. Specifically, Defendants failed to disclose to
investors:(1) Defendant Petit, the "financial expert" on
Intelligent Systems' Audit Committee engaged in accounting fraud as
the CEO of MiMedx Group, Inc.; (2) Intelligent Systems' CEO,
Defendant Strange, engaged in undisclosed related-party
transactions with Defendant Petit and others and had an undisclosed
personal relationship with the Company's auditor; (3) Intelligent
Systems had its employees set up or take control of shell companies
in Asia so they could partake in
undisclosed related-party transactions for the purpose of either
fabricating revenue for the Company and/or siphoning money out of
the Company; and (4) as a result, defendants' statements about
Intelligent Systems' business, operations, and prospects were
materially false and/or misleading and/or lacked a reasonable basis
at all relevant times.
On May 24, 2019, before market
hours, Aurelius Value published a report "INS: A Wolf in Pete's
Clothing." The report discussed MiMedx Group's disclosures
concerning Defendant Petit and also accused the Company's CEO,
Defendant Strange, inter alia, of engaging in undisclosed
related-party transactions with Defendant Petit and others and
of an undisclosed personal relationship with INS's auditor,
Nicolas Cauley.
On this news, shares of INS fell $4.18 per share, or more than 10% to close at
$34.93 per share on May 24, 2019, damaging investors.
On May 30, 2019, before the market
opened, Grizzly Research LLC issued a report entitled "Intelligent
Systems Corp: Material Undisclosed Related Party Transactions Cast
Doubt on the Integrity of Financial Statements." The report
presented evidence that "Intelligent Systems Corp. (INS) has its
employees set up or take control of undisclosed shell companies in
Asia, who then partake in
undisclosed related party transactions with INS intended to either
round-trip revenue back to INS or siphon money out of the
company." It further stated that "there is a possibility that
all revenue growth since January 2018
has been a result of undisclosed round-trip transactions with
Indian related parties."
On this news, shares of INS fell $6.82 from the prior day's closing price of
$33.81 or over 20%, to close at
$26.99 per share on May 30, 2019.
If you wish to serve as lead plaintiff, you must move the court
no later than September 9, 2019. A
lead plaintiff is a representative party acting on behalf of other
class members in directing the litigation. Your ability to share in
any recovery doesn't require that you serve as lead plaintiff. If
you take no action, you may remain an absent class member.
If you purchased INS securities during the Class Period,
and/or would like to discuss your legal rights and options,
please visit
https://www.bernlieb.com/cases/intelligentsystemscorporation-ins-shareholder-class-action-fraud-stock-152/or
contact Matthew Guarnero toll
free at (877) 779-1414 or MGuarnero@bernlieb.com
Since 1993, Bernstein Liebhard LLP has recovered over
$3.5 billion for its clients. In
addition to representing individual investors, the Firm has been
retained by some of the largest public and private pension funds in
the country to monitor their assets and pursue litigation on their
behalf. As a result of its success litigating hundreds of lawsuits
and class actions, the Firm has been named to The National
Law Journal's "Plaintiffs' Hot List" thirteen times and
listed in The Legal 500 for ten consecutive
years.
ATTORNEY ADVERTISING. © 2019 Bernstein Liebhard LLP. The law
firm responsible for this advertisement is Bernstein Liebhard LLP,
10 East 40th Street, New York, New
York 10016, (212) 779-1414. The lawyer responsible for this
advertisement in the State of
Connecticut is Michael S. Bigin. Prior results do not
guarantee or predict a similar outcome with respect to any future
matter.
Contact Information
Matthew E. Guarnero
Bernstein Liebhard LLP
https://www.bernlieb.com
(877) 779-1414
MGuarnero@bernlieb.com
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