Intelligroup Inc. NASD: ITIGE

A class action lawsuit has been commenced in the United States District Court for the District of New Jersey on behalf of purchasers of Intelligroup Inc. ("Intelligroup" or the "Company") (NASDAQ: ITIGE) publicly traded securities during the period between May 1, 2001 and September 24, 2004 (the "Class Period").

The complaint charges Intelligroup and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Intelligroup describes itself as a "leading global provider of strategic IT outsourcing services. Intelligroup develops, implements and supports information technology solutions for global corporations and public sector organizations."

The complaint alleges that, throughout the Class Period, defendants issued numerous statements and filed quarterly and annual reports with the United States Securities and Exchange Commission regarding the Company's current financial performance and future earnings. As alleged in the complaint, these statements were materially false and misleading because defendants knew, but failed to disclose: (i) that Intelligroup was materially overstating its financial results by engaging in improper accounting practices. As detailed herein, Intelligroup has admitted that its prior financial reports are materially false and misleading as it announced that it is going to restate its previously issued financial statements filed on Form 10-K for the years ended December 31, 2003, 2002 and 2001 and filed on Form 10-Q for the quarterly periods beginning January 1, 2001 to date; (ii) that the Company lacked adequate internal controls and was therefore unable to ascertain its true financial condition; and (iii) that as a result of the foregoing, the values of the Company's revenues, net income and earnings before interest, taxes, depreciation, and amortization ("EBITDA") were materially overstated at all relevant times.

On September 24, 2004, slightly over a month after its auditors resigned, the Company shocked the market when it issued a press release announcing its intention to restate its previously issued financial statements filed on Form 10-K for the years ended December 31, 2003, 2002 and 2001 and filed on Form 10-Q for the quarterly periods beginning January 1, 2001 to date. Upon this shocking news, shares of the Company's stock fell an additional $0.52 per share or almost 32% to close at $1.13 per share, on unusually heavy trading volume. Prior to the disclosure of these adverse facts, defendants Valluripalli and Visco sold their personally-held Intelligroup stock to the unsuspecting public thereby reaping almost $3 million in illicit proceeds.

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.