NIC, Inc. Faces Investor Investigation

If you are a current long term investor in NIC Inc. (NASDAQ:EGOV), and/or have information relating the investigation, you have certain options and you should contact the Shareholders Foundation, Inc by email mail@shareholdersfoundation.com or call +1(858) 779 – 1554.

To have your information reviewed for options and to recieve notifications about this investigation, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
NIC
Affected Securities: 
NASDAQ: EGOV

An investigation on behalf of investors in NIC, Inc. (NASDAQ:EGOV) over possible breaches of fiduciary duty in connection with an ongoing investigation by the Securities and Exchange Commission regarding improper reporting of business expenses by a former NIC, Inc. officer was announced.

NIC, Inc., located in Olathe, KS, provides eGovernment services that help governments use the Internet to provide a higher level of service to businesses and citizens. The investigation by a law firm concerns potential breaches of fiduciary duties in connection with an ongoing investigation by the U.S. Securities and Exchange Commission (“SEC”) regarding improper reporting of business expenses by a former officer of NIC, Inc.

On August 5, 2010, NIC announced that the SEC Division of Enforcement "is considering recommending that the SEC authorize a civil injunctive action against the Company and its officers alleging violations of various provisions of federal securities laws." This disclosure related to allegations that payments were made for the reimbursement of personal expenses, rather than business expenses. The company reported the SEC believes the alleged conduct, which concerns former CEO and Chairman Jeffrey S. Fraser, has been going on for several years without action by company officers. NIC reported the SEC "believes that the Company and its Officer should have responded sooner and more completely to indications of potential misconduct by Mr. Fraser."

NIC, Inc. reported increasing revenue over the past four years. NIC reported in 2006 $71.38million Total Revenue, in 2007 $85.75million, in 2008 $100.58million, and in 2009 $132.89million. While its revenue almost doubled within the past four years NIC Net Income rose by 30% over the same time period. NIC, Inc reported in 2006 $10.74million and in 2009 $13.66million. Shares of NIC, Inc. traded recently at $7.03 per share, down from its current 52weekHigh of $9.44 per share. During the dot.com bubble NIC shares traded as high as over $60 per share.