BENSALEM, Pa.--(BUSINESS WIRE)--Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of investors who purchased Intelligent Systems Corporation (“Intelligent Systems” or the “Company”) (NYSE: INS) securities between January 23, 2019 and May 29, 2019, inclusive (the “Class Period”). Intelligent Systems investors have until September 9, 2019 to file a lead plaintiff motion.
Investors suffering losses on their Intelligent Systems investments are encouraged to contact the Law Offices of Howard G. Smith to discuss their legal rights in this class action at 888-638-4847 or by email to firstname.lastname@example.org.
On May 24, 2019, Aurelius Value published a report alleging that the financial expert of the Company’s Audit Committee, Parker H. Petit (“Petit”), had engaged in improper accounting practices and that its Chief Executive Officer had engaged in many undisclosed related-party transactions.
On this news, the Company’s share price fell $4.18, more than 10%, to close at $34.93 per share on May 24, 2019, thereby injuring investors.
Then, on May 30, 2019, Grizzly Research LLC published a report alleging that the Company’s employees take control of undisclosed shell companies in Asia, which then engage in undisclosed related-party transactions “to either round-trip revenue back to [Intelligent Systems] or siphon money out of the company.”
On this news, the Company’s share price fell $6.82, or over 20%, to close at $26.99 per share on May 30, 2019, thereby injuring investors further.
The complaint filed in this class action alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company’s business, operations, and prospects. Specifically, Defendants failed to disclose to investors: (1) that Petit, the “financial expert” on Intelligent Systems’ Audit Committee engaged in accounting fraud as the CEO of MiMedx Group, Inc.; (2) that the Company’s CEO, Leland Strange, engaged in undisclosed related-party transactions with Petit and others and had an undisclosed personal relationship with the Company’s auditor; (3) that the Company had its employees set up or take control of shell companies in Asia so they could partake in undisclosed related-party transactions for the purpose of either fabricating revenue for the Company and/or siphoning money out of the Company; and (4) that, as a result of the foregoing, Defendants’ positive statements about the Company’s business, operations, and prospects were materially misleading and/or lacked a reasonable basis.
If you purchased shares of Intelligent Systems, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at 215-638-4847, toll-free at 888-638-4847, or by email to email@example.com, or visit our website at www.howardsmithlaw.com.
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