| Company: | Datatec Systems, Inc. |
| Ticker Symbol: | NASD: DATCE |
| Class Period: | June 26, 2003 to December 16, 2003 |
| Court: | District, NJ |
| Date Filed: | Feb-09-04 |
| Lead Plaintiff Deadline: | Apr-09-04 |
| Allegations: |
A securities class action has been commenced on behalf of shareholders who acquired Datatec Systems, Inc.
(Nasdaq:DATCE) securities between June 26, 2003 and December 16, 2003, inclusive (the Class Period).
The case is pending in Federal Court for the District of New Jersey, against the company and certain key officers and directors.
The complaint alleges violations of Section 10(b) and 20(a) of the Securities Exchange Act. CEO Isaac Gaon told investors that Datatec was on track to earn $0.14 to $0.16 per share for fiscal 2004. Datatec, however, hid its true financial condition so that it could obtain continued financing from IBM Credit, an important company lender.
On December 5, 2003, Datatec surprised investors with the news that CEO Gaon had been thrown out and replaced by a new CEO, Raul Pupo. On December 17, 2003, Datatec told investors it would suffer a $10 million loss for the fiscal quarter ended October 31, 2003, and that Datatec's Audit Committee had hired outside counsel to review Datatec's valuation of its long-term contracts. IBM Credit has since refused to waive Datatec's non-compliance with financial covenants. Datatec's stock price fell substantially on large volume.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The case is pending in Federal Court for the District of New Jersey, against the company and certain key officers and directors.
The complaint alleges violations of Section 10(b) and 20(a) of the Securities Exchange Act. CEO Isaac Gaon told investors that Datatec was on track to earn $0.14 to $0.16 per share for fiscal 2004. Datatec, however, hid its true financial condition so that it could obtain continued financing from IBM Credit, an important company lender.
On December 5, 2003, Datatec surprised investors with the news that CEO Gaon had been thrown out and replaced by a new CEO, Raul Pupo. On December 17, 2003, Datatec told investors it would suffer a $10 million loss for the fiscal quarter ended October 31, 2003, and that Datatec's Audit Committee had hired outside counsel to review Datatec's valuation of its long-term contracts. IBM Credit has since refused to waive Datatec's non-compliance with financial covenants. Datatec's stock price fell substantially on large volume.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
If your injustice does not match the complaint described above, please use this form to register your complaint. Thank you.
