GTSI Corp. Is Under Investor Investigation Over Possible Securities Laws Violations

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Company Name(s): 
GTSI
Affected Securities: 
NASDAQ: GTSI

San Diego, Aug 22, 2011 (Shareholders Foundation) -- Certain directors and officers of GTSI Corporation are under investigation on behalf of investors in shares of GTSI Corp. (NASDAQ: GTSI) over possible Violations of Securities Laws.

The investigation by a law firm focuses on possible GTSI shareholder claims based on potential violations of the federal securities laws. Specifically the investigation concerns whether GTSI Corp. or others may have violated securities laws by issuing a series of statements regarding its business, its prospects and its operations that were materially false and misleading at the time they were made.

GTSI’s annual Total Revenue declined from $821.16million in 2008 to $666.71million in 2010 and its Net Income fell from $7.83million in 08 to a Net Loss of $0.93million in 2010. Additionally GTSI Corp. reported a first quarter Total Revenue in 2011 of $70.33milion compared to $101.81million one year

Shares of GTSI Corp. (Public, NASDAQ GTSI) increased from as low as $3.40 in March 09 to almost $8 per share in October 09.

During the first months in 2010 NASDAQ: GTSI shares traded at roughly $5.50 per share and then increased on October 1, 2010 to as high as $7.25 per share.

GTSI Corp announced after the market closed on Oct 1, 2010, that it received a notice from the Small Business Administration SBA indicating that it was temporarily suspending GTSI from any future contract awards from the federal government. That same day, an article published by The Washington Post reported that the SBA letter to GTSI’s chief executive officer indicated that the suspension concerned allegations that “GTSI was an active participant in a scheme that resulted in contracts set-aside for small businesses being awarded to ineligible contractors.”

Following the October 1st announcement GTSI stock fell from over $7 per share to $3.55 on October 8.

Then, on October 19, 2010, GTSI announced that it reached an agreement with the SBA to lift the federal contract suspension. Since then NASDAQ GTSI shares traded the next months slightly below $5 and fell from over $5.5 in June and over $5 in July 2011 to recently $4.40 per share.