IntraLinks (IL) Sued Over Reduced Outlook and SEC Subpoena
Allen Yesilevich | December 7, 2011
IntraLinks Holdings Inc. (NYSE: IL) has been accused of hiding a slowdown in its Enterprise business segment in a class action complaint filed in the United States District Court for the Southern District of New York on behalf of all purchasers of IntraLinks common stock from February 17, 2011 to November 10, 2011.
On May 11, IntraLinks announced in its financial results for the first quarter of 2011 that it was reducing its full year 2011 income estimates from $21 million to $23 million, to $17 million to $19 million. During the conference call with investors, IntraLinks revealed that the downward revision was due to a large Enterprise customer drastically reducing its use of IntraLinks’s products. In reaction to the news, IntraLinks shares fell 32.58% to $20.22 per share.
Shares of IntraLinks fell another 45% on August 10, after announcing the receipt of a subpoena from the United States Securities and Exchange Commission (SEC) requesting documents about the company’s business in 2011.
Then, on November 8, IntraLinks issued a press release reporting a third quarter per share earnings of $0.11 below the $0.12 analyst estimate. The company said continuing problems in its Enterprise business segment will impact its financial results.
In response to this news, shares of IntraLinks fell 37% on the next trading day.
If you purchased IntraLinks Holdings common stock from February 17, 2011 to November 10, 2011, you may file a motion with the court no later than February 3, 2012, and request that the court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the court must decide that your claim is typical of the claims of other class members and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by your decision of whether or not to serve as a lead plaintiff. You can recover as an absent class member without moving for lead plaintiff. The action discussed here was not filed by Milberg.
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Steve Bursey, a 27-year veteran of the FBI, has directed many major class action investigations, including Tyco, Enron, WorldCom, Xerox, Lucent, and the Bernie Madoff scandal. His team of Certified Public Accountants, Chartered Accountants, and Certified Fraud Examiners have experience working with whistleblowers and aggrieved consumers and investors. For more information, contact Steve and his team