IntraLinks Holdings, Inc. Hit By Investor Class Action Lawsuit Over Alleged Securities Laws Violations
MAY 2013 - The Judge denied the defendant's motion to dismiss the case. The Judge said the complaint sufficiently alleged that statements from IntraLinks executives in 2011 misleadingly touted the company’s customer satisfaction and renewal rates, even as the FDIC, the company’s largest customer, was planning not to renew its contract for cloud-based computing services.
APRIL 2012 - Judge appointed lead plaintiff and lead counsel.
San Diego, Dec. 5, 2011 (Shareholders Foundation) -- An investor in shares of IntraLinks Holdings, Inc. (NYSE:IL) filed a lawsuit in United States District Court for the Southern District of New York against IntraLinks over alleged Violations of Federal Securities Laws was announced.
According to the complaint the plaintiff alleges that IntraLinks Holdings and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing between February 17, 2011 and November 10, 2011, materially false and misleading statements regarding IntraLinks Holdings’ business and prospects. Specifically, so the lawsuit, defendants misrepresented and/or failed to disclose that IntraLinks Holdings was experiencing a slowdown in its Enterprise business segment.
While IntraLinks Holdings reported that its annual Revenue increased from $122.71million in 2007 to $184.33million in 2010, however IntraLinks Holdings, Inc. was not able to pull out of its Net loss which ranged from $12.44million to $24.77million.
Shares of IntraLinks Holdings, Inc. (Public, NYSE:IL) rose from $12.32 per share in August 2010 to as high as $31.76 per share in April 29, 2011.
Then on May 11, 2011, IntraLinks Holdings, Inc announced its financial results for the first quarter of 2011, announcing the reduction of its full year 2011 income projections from $21-$23 million to $17-$19 million.
On August 10, 2011, I IntraLinks Holdings, Inc issued a press release announcing its financial results for the second quarter of 2011.
Then on November 8, 2011, IntraLinks Holdings, Inc. (NYSE: IL) announced its results for its third quarter of 2011. Among other things, IntraLinks Holdings issued also its fourth quarter 2011 guidance which is below analysts' estimates.
Since April NYSE IL shares fell to recently roughly $5 per share. In fact, NYSE IL stocks dropped from $8.79 per share on November 8th to as low as $4.80 on Nov. 10, 2011.