DatatecCohen Milstein serves as court-appointed lead counsel for a class of investors who purchased the common stock of Datatec Systems, Inc. (“Datatec” or the “Company”) between June 26, 2003 and December 16, 2003 (the “Class Period”), pending before Judge Garrett E. Brown, Jr., of the United States District Court for the District of New Jersey. Plaintiffs’ Second Amended Complaint, filed on October 31, 2005, asserts claims against certain officers and directors of Datatec as well as Deloitte & Touche LLP, Datatec’s outside auditor. The complaint alleges that Defendants made materially false and misleading statements regarding Datatec’s financial results. In particular, the complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (the “Exchange Act”), and Rule 10b-5 promulgated thereunder, by knowingly or recklessly making false and misleading statements and omissions in several public statements during the Class Period that overstated Datatec’s financial results in violation of GAAP and Datatec’s internal accounting policies. Plaintiffs specifically allege that Defendants knowingly or recklessly made false and misleading statements related to Datatec’s gross revenues, levels of debt in comparison to its assets, creditworthiness, and viability as a going concern. Plaintiffs further allege that Plaintiffs and other Class members purchased Datatec common stock during the Class Period at prices that were artificially inflated as a result of Defendants’ violations of federal securities laws, and were injured thereby. The parties signed a Stipulation and Agreement of Settlement on April 16, 2007 which provides for a settlement fund of $750,000. Judge Brown preliminarily approved the settlement on May 9, 2007. A fairness hearing was held before Judge Brown on September 24, 2007. On November 28, 2007, Judge Brown entered an order finally approving the settlement. To learn more about and/or participate in the Settlement, please review the “Notice of Proposed Settlement of Class Action, Hearing on Proposed Settlement and Attorneys’ Fee Petition, and Right to Share in Settlement Fund” to the right. |
