SAN FRANCISCO--(BUSINESS WIRE)--The law firm of Lieff Cabraser Heimann & Bernstein, LLP announces that a class action lawsuit has been brought on behalf of purchasers of the common stock of SAIC, Inc. (“SAIC” or the “Company”) (NYSE: SAI) between April 11, 2007 and September 1, 2011, inclusive (the “Class Period”).
If you purchased SAIC common stock during the Class Period, you may move the Court for appointment as lead plaintiff by no later than April 23, 2012. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the action will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
SAIC shareholders who wish to learn more about the action and how to seek appointment as lead plaintiff should click here or contact Sharon Lee of Lieff Cabraser toll free at (800) 541-7358.
Background on the SAIC Securities Class Litigation
The action is brought against SAIC and certain current and former senior officials for violations of the Securities Exchange Act of 1934. SAIC, based in McLean, Virginia, purports to provide defense, intelligence, homeland security, logistics, energy, environment, and heath solutions and services to federal, state and local government agencies, foreign governments and customers in commercial markets.
The complaint alleges that defendants issued materially false and misleading statements during the Class Period regarding SAIC’s financial performance and business prospects. Specifically, defendants failed to disclose: (a) that SAIC had fraudulently overbilled New York City hundreds of millions of dollars on the “CityTime” project, a project focused on modernizing the City’s employee payroll system; (b) that, as a result of SAIC’s overbilling practices, its financial results during the Class Period were materially misstated; (c) that SAIC’s overbilling practices subjected the Company to numerous monetary risks and reputational risks; and (d) that, based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company.
On August 31, 2011, SAIC announced an approximately 6% decline in revenue and a 23% decline in operating margin for the second quarter of 2012. Following this announcement, defendants disclosed during an earnings conference call with analysts and investors that SAIC’s revenues were negatively affected by the “wind[ing] down” of the CityTime contract and that it was “probable” that SAIC would have to make restitution to New York City for wrongful conduct on the contract. On this news, SAIC stock fell nearly 14%, from $15.00 per share on August 31, 2011, to close at $12.97 on September 1, 2011, on unusually high trading volume.
The U.S. Attorney for the Southern District of New York, which is investigating the CityTime project, has stated that “virtually all of the $600 million that the City paid to SAIC for CityTime was tainted, directly or indirectly, by fraud.”
About Lieff Cabraser
Lieff Cabraser Heimann & Bernstein, LLP, with offices in San Francisco, New York and Nashville, is a nationally recognized law firm committed to advancing the rights of investors and promoting corporate responsibility.
Since 2003, the National Law Journal has selected Lieff Cabraser as one of the top plaintiffs’ law firms in the nation. In compiling the list, the National Law Journal examined recent verdicts and settlements in addition to overall track records. Lieff Cabraser is one of only two plaintiffs’ law firms in the United States to receive this honor for the last nine consecutive years.
For more information about Lieff Cabraser and the firm’s representation of investors, please visit http://www.lieffcabraser.com.
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