BERKELEY, Calif., Feb. 27, 2012 /PRNewswire/ -- Hagens Berman today announced it is investigating SAIC (NYSE: SAI) regarding alleged violations of the securities laws and asked that insiders with information relevant to the investigation, or investors desiring to be a lead plaintiff, contact the firm for a consultation.
"We hope to speak to individuals who have non-public information that might be relevant to the investigation," said Hagens Berman Partner Reed R. Kathrein, who is leading the firm's investigation. "We need to dig deeper and uncover who in SAIC's top management knew about the failure to disclose possible overbilling in the CityTime project, which we believe may have artificially inflated the company's stock price."
A class-action lawsuit was filed in the United States District Court for the Southern District of New York on Feb. 23, 2012. The complaint claims that SAIC and its most senior officers made false and misleading statements about SAIC's financial performance to investors.
Specifically, the complaint alleges that SAIC failed to disclose possible overbilling in its role in New York City's "CityTime" project, part of a planned update to the city's employee payroll system. The lawsuit alleges that SAIC's failure to disclose this information during the class period made its statements to investors false or misleading in violation of the federal securities laws. After SAIC released its financial results for the second quarter of 2012, executives held a conference call in which the company admitted it might be forced to subtract from its earnings on the CityTime project to reflect alleged overbilling. On the news, SAIC's stock price fell nearly 14 percent to just under $13.00. It closed at a price of $12.60 on Feb. 24, 2012.
Persons with knowledge that may help the investigation are encouraged to contact the firm. The SEC recently finalized new rules as part of its implementation of the whistleblower provisions in the Dodd-Frank Wall Street Reform Bill. The new rules protect whistleblowers from employer retaliation and allow the SEC to reward those who provide information leading to a successful enforcement with up to 30 percent of the recovery.
Investors who purchased shares of SAIC common stock between April 11, 2007, and Sept. 1, 2011, (the "class period"), have losses greater than $500,000 and desire to be a lead representative plaintiff, can also contact the firm for a consultation. The deadline to move the court for lead plaintiff status is April 23, 2012.
Whistleblowers and investors can reach Mr. Kathrein by calling (510) 725-3000. They can also contact Mr. Kathrein online by sending an email to SAIC@hbsslaw.com or by visiting www.hbsslaw.com/SAIC.
About Hagens Berman
Hagens Berman Sobol Shapiro LLP is an investor-rights class-action law firm with offices in 10 cities. The firm also represents whistleblowers, workers and consumers in complex litigation. More about the law firm and its successes can be found at www.hbsslaw.com. The firm's securities law blog is at www.meaningfuldisclosure.com.
Media Contact: Mark Firmani, Firmani + Associates, (206) 443 9357, Mark@firmani.com
SOURCE Hagens Berman