| Company: | World Information Technology Inc. |
| Ticker Symbol: | OTC: WRLT |
| Class Period: | January 3, 2003 to March 16, 2004 |
| Date Filed: | Aug-26-04 |
| Lead Plaintiff Deadline: | Oct-25-04 |
| Court: | Southern District, NY |
| Allegations: |
A securities fraud class action lawsuit has been filed in the U.S. District Court for the Southern District of New York on behalf of purchasers of the securities of World Information Technology, Inc. ("World Information" or the "Company") (OTC: WRLT) between January 3, 2003 and March 16, 2004, inclusive.
The complaint alleges that the Company, its officers, directors and outside auditor violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. World Information purported to be a leading "online, member-created, Internet community." Throughout the class period, the Company reported artificially inflated sales, accounts receivable and net income. Despite these violations, the Company's outside auditor, Beckstead & Watts, LLP ("B&W"), certified the Company's 2002 financial statements. In September 2003, B&W wrote to CEO Gary D. Morgan, questioning the validity of the Company's accounts receivable and noting problems with the Company's internal financial controls, but did not withdraw its audit report. In January 2004, B&W resigned as the Company's auditor, followed by CFO Steven D. Fellows who resigned in February 2004. On March 16, 2004, the Company announced that the Securities and Exchange Commission had temporarily suspended trading of the Company's securities due to the inaccuracy and incompleteness of the Company's financial statements.
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 the Company, its officers, directors and outside auditor violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. World Information purported to be a leading "online, member-created, Internet community." Throughout the class period, the Company reported artificially inflated sales, accounts receivable and net income. Despite these violations, the Company's outside auditor, Beckstead & Watts, LLP ("B&W"), certified the Company's 2002 financial statements. In September 2003, B&W wrote to CEO Gary D. Morgan, questioning the validity of the Company's accounts receivable and noting problems with the Company's internal financial controls, but did not withdraw its audit report. In January 2004, B&W resigned as the Company's auditor, followed by CFO Steven D. Fellows who resigned in February 2004. On March 16, 2004, the Company announced that the Securities and Exchange Commission had temporarily suspended trading of the Company's securities due to the inaccuracy and incompleteness of the Company's financial statements.
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.
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
If your injustice does not match the complaint described above, please use this form to register your complaint. Thank you.
