Cohen milstein sellers & toll pllc announces investigation of saic, inc.
Washington--(business wire)--cohen milstein sellers & toll pllc is conducting an investigation to determine whether saic, inc. (“saic” or the “company”) and certain of its officers and directors made false and misleading statements and/or omissions in violation of sections 10(b) and 20(a) of the securities exchange act of 1934. a class action lawsuit has been filed in the u.s. district court for the southern district of new york by another law firm on behalf of purchasers of the common stock of saic, inc. (nyse: sai) between april 11, 2007 and september 1, 2011, inclusive (the “class period”). the complaint alleges that saic and certain of its officers and/or directors (“defendants”) misrepresented and/or failed to disclose that: (1) over a multi-year period saic had overbilled new york city hundreds of millions of dollars on the citytime project, an initiative to develop and implement a modernized payroll system for new york city employees; (2) as a result of saic's overbilling practices, its operating results during the class period were materially misstated and the company was exposed to numerous undisclosed monetary and reputational risks; (3) saic violated applicable accounting standards associated with the recognition of revenue and loss contingencies; (4) certifications related to the company's internal and disclosure controls were materially false and misleading; and (5) in light of the foregoing, defendants lacked a reasonable basis for their positive statements about the company and its business and prospects. on december 21, 2010, the new york state comptroller, thomas dinapoli, issued a statement announcing that he had rejected a $118 million contract between the new york city transit authority and saic citing “saic’s role in the citytime scandal.” dinapoli’s announcement came a day after the release of a letter in which a new york city official accused saic of, among other things, unnecessarily running up costs on citytime by causing improper delays, attempting to rewrite contracts without the city’s involvement, failing to comply with industry standards, and using unqualified personnel. in may 2011, one of the defendants was arrested and charged with receiving more than $5 million in kickbacks, wire fraud conspiracy and money laundering by federal prosecutors in connection with a probe into the citytime scandal. following the arrest, mayor bloomberg said that the ongoing investigation had revealed that there “may well have been widespread fraud and gross negligence within saic” and vowed to seek recovery from all responsible parties. after the market close on august 31, 2011, saic released disappointing second quarter results and lowered its revenue forecast for the fiscal year ending january 31, 2012, citing a slowdown in u.s. government contracts. during the company’s earnings call, one defendant indicated that the second quarter “revenue contraction” was partly attributable to the “foreseen wind down of the citytime project.” the price of saic shares fell from $15.00 to $12.97 on september 1, 2011. cohen milstein encourages all investors who purchased saic common stock between april 11, 2007 and september 1, 2011 or former employees with information concerning this matter to contact the firm. if you are a saic shareholder and would like to discuss your right to recover for your economic loss, you may, without any cost or obligation, call cohen milstein’s managing partner, steven j. toll at (888) 240-0775 or (202) 408-4600, or email him at stoll@cohenmilstein.com. if you purchased the common stock of saic and wish to serve as lead plaintiff, you must move the court no later than april 23, 2012 to request that the court appoint you as lead plaintiff. a lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. to be appointed lead plaintiff, the court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. your share in any recovery will not be enhanced or diminished by the decision whether or not to serve as a lead plaintiff. any member of the proposed class may retain cohen milstein sellers & toll pllc or other attorneys to serve as your counsel in this action, or you may do nothing and remain an absent class member. cohen milstein sellers & toll pllc has significant experience in prosecuting investor class actions and actions involving securities fraud. the firm has offices in washington, d.c., new york, chicago, and west palm beach, and is active in major litigation pending in federal and state courts throughout the nation. the firm’s reputation for excellence has repeatedly been recognized by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. cohen milstein sellers & toll pllc has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total over a billion dollars. prior results do not guarantee a similar outcome. for more information visit www.cohenmilstein.com. if you have any questions about this notice or the action, or with regard to your rights, please contact either of the following: steven j. toll, esq.cameron clarkcohen milstein sellers & toll pllc1100 new york avenue, n.w.west tower, suite 500washington, d.c. 20005telephone: (888) 240-0775 or (202) 408-4600email: stoll@cohenmilstein.com; 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