| Company: | Sourcecorp, Inc. |
| Ticker Symbol: | NASD: SRCP |
| Class Period: | May 7, 2003 to October 27, 2004 |
| Date Filed: | Nov-17-04 |
| Lead Plaintiff Deadline: | Dec-31-04 |
| Court: | Northern District, TX |
| Allegations: |
A class action lawsuit in the United States District Court for the Northern District of Texas on behalf of purchasers of Sourcecorp, Inc. (Nasdaq: SRCP - News; "Sourcecorp" or the "Company") securities during the period between May 7, 2003 and October 27, 2004, inclusive (the "Class Period").
The complaint alleges that throughout the Class Period, Sourcecorp, Bowman and Edwards violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the Complaint alleges that the Defendants failed to disclose and misrepresented the following material adverse facts which were known to them or recklessly disregarded by them: (1) that the Company had materially overstated its net income and earnings per share; (2) that defendants prematurely recognized revenue in its Information Management and Distribution Division; (3) that the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (4) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (5) that as a result, the value of the Company's net income and financial results were materially overstated at all relevant times.
On October 27, 2004, the Company announced its need to restate its previously certified financial results. As a result of the restatement, the Company will have to adjust its revenues and diluted EPS for 2003 by at least $5.4 million or $0.19 per share. For the six months ending June 30, 2004, the adjustment may amount to $2.8 million or $0.10 per share. Immediately following this announcement, Sourcecorp's stock fell $5.95 per share, or almost 30%, on unusually high trading volume of 833,200 shares, from its closing price of $22.21 on October 26, 2004, to a closing price of $16.25 on October 27, 2004.
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 alleges that throughout the Class Period, Sourcecorp, Bowman and Edwards violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. More specifically, the Complaint alleges that the Defendants failed to disclose and misrepresented the following material adverse facts which were known to them or recklessly disregarded by them: (1) that the Company had materially overstated its net income and earnings per share; (2) that defendants prematurely recognized revenue in its Information Management and Distribution Division; (3) that the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (4) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (5) that as a result, the value of the Company's net income and financial results were materially overstated at all relevant times.
On October 27, 2004, the Company announced its need to restate its previously certified financial results. As a result of the restatement, the Company will have to adjust its revenues and diluted EPS for 2003 by at least $5.4 million or $0.19 per share. For the six months ending June 30, 2004, the adjustment may amount to $2.8 million or $0.10 per share. Immediately following this announcement, Sourcecorp's stock fell $5.95 per share, or almost 30%, on unusually high trading volume of 833,200 shares, from its closing price of $22.21 on October 26, 2004, to a closing price of $16.25 on October 27, 2004.
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.
