| Company: | Insight Enterprises, Inc., |
| Ticker Symbol: | NSIT |
| Class Period: | Jan-30-07 to Feb-6-09 |
| Date Filed: | Mar-24-09 |
| Lead Plaintiff Deadline: | May-23-09 |
| Court: | District of Arizona |
| Allegations: | |
The Complaint charges Insight Enterprises and certain of the Company's current and former executive officers with violations of federal securities laws. Insight Enterprises provides brand-name information technology hardware, software and services to large enterprises, small-to medium-sized businesses, and public sector institutions in North America, Europe, the Middle East, Africa and Asia-Pacific. The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning Insight Enterprises's business, operations and prospects were materially false and misleading. Specifically, the Complaint alleges that defendants' public statements were false and misleading or failed to disclose or indicate the following: (1) that the Company was improperly accounting for trade credits; (2) that, as a result, the Company misstated its financial results during the Class Period; (3) that the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles; (4) that the Company lacked adequate internal and financial controls; and (5) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On February 9, 2009, Insight Enterprises shocked the market when it revealed that the Company's management and the Audit Committee of the Board of Directors had determined that Insight Enterprises would have to restate its previously reported earnings as a result of its historical accounting treatment of aged trade credits. The Company further disclosed that the restatement pertained to the release of certain aged trade credits from its balance sheet to its statement of earnings prior to the complete release of the underlying liabilities under applicable legal requirements. Insight Enterprises announced that it expects to restate financial statements included in the Company's most recently filed Annual Report on Form 10-K, for the year ended December 31, 2007, and in the Quarterly Reports on Form 10-Q for the first three quarters of fiscal year 2008. On this news, shares of Insight Enterprises declined $2.85 per share, more than 48%, to close on February 9, 2009, at $3.05 per share on unusually heavy trading volume.
Subsequently, the Company further disclosed that on March 19, 2009, the Company received an informal inquiry from the Securities and Exchange Commission requesting certain documents and information relating to its historical accounting treatment of aged trade credits.
The plaintiff seeks to recover damages on behalf of class members.
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.
