SAN DIEGO & NORCROSS, Ga.--(BUSINESS WIRE)--Shareholder rights law firm Robbins Arroyo LLP announces that a purchaser of Intelligent Systems Corporation (NYSE: INS) filed a class action complaint for alleged violations of the Securities Exchange Act of 1934 between January 23, 2019 and May 29, 2019. Intelligent Systems provides technology solutions and processing services to the financial technology and services market.
View this information on the law firm's Shareholder Rights Blog: https://www.robbinsarroyo.com/intelligent-systems-corporation/
Intelligent Systems Accused of Misleading Investors
According to the complaint, throughout the relevant period, Intelligent Systems issued a series of press releases and filings with the SEC touting positive financial results and affirming its control over financial reporting. This included a Proxy Statement filed in April 2019 regarding the selection of Parker Petit as director of the company due to his "extensive experience as a successful entrepreneur and as an executive," deeming him a "financial expert." These statements were materially false and misleading and failed to disclose that Petit engaged in accounting fraud as CEO of MiMedx Group and that Petit, Intelligent Systems' CEO, and other Intelligent Systems employees had engaged in undisclosed related-party transactions to fabricate revenue for the company. This information became public in May 2019 when Aurelius Value and Grizzly Research LLC published reports that revealed Petit’s conduct at MiMedx Group and the related-party transactions at Intelligent Systems. On this news, the stock price dropped $12.12, or 30%, to close at $26.99.
Intelligent Systems Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Leo Kandinov at (800) 350-6003, firstname.lastname@example.org or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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