| Company: | Tag-It Pacific, Inc. |
| Ticker Symbol: | AMEX: TAG |
| Class Period: | November 14, 2003 to August 12, 2005 |
| Date Filed: | Oct-16-05 |
| Lead Plaintiff Deadline: | Dec-15-05 |
| Court: | Central District, CA |
| Allegations: |
A securities fraud lawsuit has been filed against Tag-It Pacific, Inc. ("Tag-It") and certain of its officers and directors, on behalf of all persons who purchased Tag-It securities on the open market during the period November 14, 2003 through August 12, 2005. The action was filed in the United States District Court, Central District of California, Civil Action No: 05-7352. The complaint can be obtained from the Court or by contacting Wolf Popper.
The complaint alleges that during the Class Period, defendants caused Tag-It to issue numerous press releases and file quarterly and annual reports with the SEC, materially misstating its financial condition, accounts receivable and inventory, and falsely stating that the Company, notwithstanding the loss of its largest customers, was expanding its customer base, continuing sales growth, and improving gross margins. Unbeknownst to investors, as a result of the loss of its largest customers in 2003, millions of dollars in inventory became obsolete and millions of dollars in accounts receivable became uncollectible.
On August 15, 2005, Tag-It stunned the market when it revealed its true financial condition, informing investors that the Company was going to report a "significant operating loss" due to an increase in reserves for accounts receivable and inventory. On this news, Tag-It's share price plummeted 41.38% to $1.36 from the prior days closing of $2.32. On August 22, 2005, the Company further disclosed that it was required to increase its reserve for doubtful accounts by $6.4 million and increase its reserve for inventory obsolescence by $1.55 million.
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.
At LawyersandSettlements.com, it is our goal to keep you informed about important legal cases and settlements. We are dedicated to helping you resolve your legal complaints.
The complaint alleges that during the Class Period, defendants caused Tag-It to issue numerous press releases and file quarterly and annual reports with the SEC, materially misstating its financial condition, accounts receivable and inventory, and falsely stating that the Company, notwithstanding the loss of its largest customers, was expanding its customer base, continuing sales growth, and improving gross margins. Unbeknownst to investors, as a result of the loss of its largest customers in 2003, millions of dollars in inventory became obsolete and millions of dollars in accounts receivable became uncollectible.
On August 15, 2005, Tag-It stunned the market when it revealed its true financial condition, informing investors that the Company was going to report a "significant operating loss" due to an increase in reserves for accounts receivable and inventory. On this news, Tag-It's share price plummeted 41.38% to $1.36 from the prior days closing of $2.32. On August 22, 2005, the Company further disclosed that it was required to increase its reserve for doubtful accounts by $6.4 million and increase its reserve for inventory obsolescence by $1.55 million.
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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