NEW YORK--(BUSINESS WIRE)--The law firm of Kirby McInerney LLP announces that a class action lawsuit has been filed in the U.S. District Court for the Eastern District of New York on behalf of those who acquired Intelligent Systems Corporation (“Intelligent Systems” or the “Company”) (NYSE: INS) securities during the period from January 23, 2019 to May 29, 2019 (the “Class Period”). Investors have until September 9, 2019 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
The lawsuit alleges that the Company failed to disclose that: (i) Defendant Petit, the “financial expert” on Intelligent Systems’ Audit Committee engaged in accounting fraud as the CEO of MiMedx Group, Inc. (“MiMedx Group”); (ii) Intelligent Systems’ CEO, Defendant Strange, engaged in undisclosed related-party transactions with Defendant Petit and others and had an undisclosed personal relationship with the Company’s auditor; and (iii) Intelligent Systems 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.
On May 23, 2019, after market hours, MiMedx Group filed a Form 8-K with the SEC that stated that an investigation by its audit committee had found that Defendant Petit engaged in accounting fraud when he was the CEO of MiMedx Group. On May 24, 2019, before market hours, Aurelius Value published a report discussing MiMedx Group’s disclosures as well as undisclosed related-party transactions and Defendant Strange’s relationship with the Company’s auditor. On this news, Intelligent Systems’ share price fell $4.18, or 10.6%, to close at $34.93 May 24, 2019.
On May 30, 2019, Grizzly Research published a report alleging that Intelligent Systems employees had used “undisclosed round-trip transactions” with shell companies in Asia to fabricate revenue. On this news, Intelligent Systems’ share price fell $6.82, or 20.2%, to close at $26.99 on May 30, 2019.
If you acquired Intelligent Systems securities during the Class Period, have information, or would like to learn more about these claims, please contact Thomas W. Elrod of Kirby McInerney at 212-371-6600, by email at firstname.lastname@example.org, or by filling out this contact form, to discuss your rights or interests with respect to these matters without any cost to you.
Kirby McInerney is a New York-based plaintiffs’ law firm concentrating in securities, antitrust, and whistleblower litigation. The firm’s efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling billions of dollars. Additional information about the firm can be found at Kirby McInerney’s website: www.kmllp.com.
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