| Company: | IT Group, Inc. |
| Class Period: | October 21, 1998 to February 23, 2000 |
| Date Filed: | Jan-20-05 |
| Lead Plaintiff Deadline: | Mar-18-05 |
| Court: | Western District, PA |
| Allegations: |
A securities class action lawsuit was filed in the United States District Court for the Western District of Pennsylvania, Case No. 2:03cv00288, on behalf of a class (the ''Class'') consisting all persons or entities who purchased or otherwise acquired securities of IT Group, Inc. (''The IT Group'' or the ''Company'') between October 21, 1998 and February 23, 2000, inclusive (the ''Class Period'').
The Complaint charges IT Group and certain of the Company's executive officers with violations of the Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Plaintiffs claim defendants' omissions and material misrepresentations concerning IT Group's financial performance, in Company quarterly press releases and Form 10-K annual reports and Form 10-Q quarterly reports filed with the Securities and Exchange Commission between October 21, 1998 and February 23, 2000, artificially inflated the Company's stock price, inflicting damages on investors. The Complaint alleges that during the Class Period defendants (i) overstated IT Group's accounts receivable by improper inclusion of unapproved change orders and purchase price adjustments made in connection with acquisitions; (ii) misrepresented the quality of IT Group's accounts receivable, by overstating billed receivables and understating unbilled receivables; (iii) concealed that the IT Group was undergoing a liquidity crisis due to the failure of its acquisitions strategy, (iv) failed to disclose that the government contracts, which IT Group claimed provided it with a multi-billion dollar backlog, were actually awarded to multiple vendors, and (v) failed to disclose that the quality of IT Group's receivables was impaired due to the Company's violation of the U.S. Government's Federal Acquisition Regulations ''pay-when-paid'' requirements.
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 IT Group and certain of the Company's executive officers with violations of the Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. Plaintiffs claim defendants' omissions and material misrepresentations concerning IT Group's financial performance, in Company quarterly press releases and Form 10-K annual reports and Form 10-Q quarterly reports filed with the Securities and Exchange Commission between October 21, 1998 and February 23, 2000, artificially inflated the Company's stock price, inflicting damages on investors. The Complaint alleges that during the Class Period defendants (i) overstated IT Group's accounts receivable by improper inclusion of unapproved change orders and purchase price adjustments made in connection with acquisitions; (ii) misrepresented the quality of IT Group's accounts receivable, by overstating billed receivables and understating unbilled receivables; (iii) concealed that the IT Group was undergoing a liquidity crisis due to the failure of its acquisitions strategy, (iv) failed to disclose that the government contracts, which IT Group claimed provided it with a multi-billion dollar backlog, were actually awarded to multiple vendors, and (v) failed to disclose that the quality of IT Group's receivables was impaired due to the Company's violation of the U.S. Government's Federal Acquisition Regulations ''pay-when-paid'' requirements.
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.
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