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A disgruntled shareholder has filed a class-action suit against Integral Systems, claiming the Lanham satellite systems provider made false financial statements, violated federal Securities and Exchange Commission rules and damaged stockholders.
In the 30-page complaint filed Dec. 15 in U.S. District Court in Maryland, Anthony Vidmar of Montgomery County says Integral "shocked investors" when it announced Dec. 10 that its unaudited financial statements could no longer be relied on due to accounting errors. Integral said about $10 million in revenues would have to be deferred as a result of the company's audit.
That day, Integral's stock price fell from $22.42 to $15.92. By late December, stock was selling at about $8.90 per share. Shares were at $12.09 on Monday.
On behalf of Vidmar, law firm Cohen Milstein Sellers & Toll PLLC of Washington, D.C., filed the suit and is calling for any other parties that were affected from April 28 to Dec. 10.
"As a result of these materially false and/or misleading statements, and for failure to disclose, Integral Systems' securities traded at artificially inflated prices," the complaint states.
Integral CEO John Higginbotham issued a statement Monday describing the suit's claims as "without merit" and saying Integral "intends to defend the litigation vigorously."
"We remain committed to providing our shareholders and investors transparent, candid assessments of our business. Integral Systems management remains focused on business operations and providing outstanding service to our customers," he said.
Integral reported $18.2 million in profits for the year ended Sept. 30, up from $12.8 million in fiscal 2007.