| Company: | iMergent, Inc. |
| Ticker Symbol: | AMEX: IIG |
| Class Period: | November 30, 2004 to February 25, 2005 |
| Date Filed: | Mar-08-05 |
| Lead Plaintiff Deadline: | May-06-05 |
| Court: | District, UT |
| Allegations: |
A class action has been commenced in the United States District Court for the District of Utah on behalf of purchasers of iMergent, Inc. ("iMergent") (AMEX:IIG) publicly traded securities during the period between November 30, 2004 and February 25, 2005 (the "Class Period").
The complaint charges iMergent and certain of its officers and directors with violations of the Securities Exchange Act of 1934. iMergent sells Internet merchant services through its StoresOnline, Inc. subsidiary. Through its subsidiary, iMergent mass markets storefront software and service packages through marketing seminars to small businesses to facilitate their online sales.
The complaint alleges that throughout the Class Period, iMergent represented to the investment community that it was a successful software company while concealing that its sales practices violated the laws of many of the states it operates in and the full extent of the uncollectibility of its installment contracts with its clients, many of which did not meet the Company's own credit criteria. On February 22, 2005, it was disclosed that the Texas Attorney General had filed suit against iMergent, the Company's Chairman, Donald L. Danks ("Danks"), and the Company's President, Brandon B. Lewis, alleging the Company's wholly owned subsidiary, StoresOnline.com, was selling defective storefront software and service packages and extorting thousands of dollars in additional "executive mentoring" fees from its customers when they could not use the software packages. In addition, Danks admitted at an investment conference held on February 25, 2005, that iMergent had been selling the software packages in installment contracts to customers with subprime credit. Many of these customers had little or no success with the Company's software and simply walked away from their contractual obligations when their new online "businesses" failed. Danks admitted that in the aggregate, only approximately 56% of the purchase price was eventually collected from these subprime customers through installment contracts.
According to the complaint, as a result of defendants' false statements, iMergent's stock traded at inflated levels during the Class Period, increasing to above $25 per share on February 9, 2005, at which time the Company's top officers and directors sold or otherwise disposed of more than $6.5 million worth of their own shares. As the market digested this news, the Company's stock price plummeted from its Class Period high of over $25 per share on February 9, 2005 to below $12 per share on March 1, 2005, when trading was halted.
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 complaint charges iMergent and certain of its officers and directors with violations of the Securities Exchange Act of 1934. iMergent sells Internet merchant services through its StoresOnline, Inc. subsidiary. Through its subsidiary, iMergent mass markets storefront software and service packages through marketing seminars to small businesses to facilitate their online sales.
The complaint alleges that throughout the Class Period, iMergent represented to the investment community that it was a successful software company while concealing that its sales practices violated the laws of many of the states it operates in and the full extent of the uncollectibility of its installment contracts with its clients, many of which did not meet the Company's own credit criteria. On February 22, 2005, it was disclosed that the Texas Attorney General had filed suit against iMergent, the Company's Chairman, Donald L. Danks ("Danks"), and the Company's President, Brandon B. Lewis, alleging the Company's wholly owned subsidiary, StoresOnline.com, was selling defective storefront software and service packages and extorting thousands of dollars in additional "executive mentoring" fees from its customers when they could not use the software packages. In addition, Danks admitted at an investment conference held on February 25, 2005, that iMergent had been selling the software packages in installment contracts to customers with subprime credit. Many of these customers had little or no success with the Company's software and simply walked away from their contractual obligations when their new online "businesses" failed. Danks admitted that in the aggregate, only approximately 56% of the purchase price was eventually collected from these subprime customers through installment contracts.
According to the complaint, as a result of defendants' false statements, iMergent's stock traded at inflated levels during the Class Period, increasing to above $25 per share on February 9, 2005, at which time the Company's top officers and directors sold or otherwise disposed of more than $6.5 million worth of their own shares. As the market digested this news, the Company's stock price plummeted from its Class Period high of over $25 per share on February 9, 2005 to below $12 per share on March 1, 2005, when trading was halted.
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 you are a current or former employee of this company, and have 401(k) shares, please use this form to register your complaint. Thank you.
