Colchester, CT (PRWEB) August 31, 2005
Scott + Scott, LLC (http://www.scott-scott.com), which filed the first securities fraud action against Investors Financial Services Corporation ("Investors Financial" or the "Company") and individual defendants on August 4, 2005, represents numerous client shareholders in the United States District Court of Massachusetts (1:05-cv-11627-RCL). Purchasers of securities in Investors Financial during the class period from October 15, 2003 through July 15, 2005 inclusive (the "Class Period") are members of the purported class. Investors Financial operates as a bank holding company for Investors Bank & Trust Company that provides asset administration services for the financial services industry in the United States. Recent information about the Company was issued by it on August 9, 2005 in its 10-Q at http://biz.yahoo.com/e/050809/ifin10-q.html .
If you wish to discuss this action or have questions concerning this notice or your rights as a class member, you may contact this firm for more information. Contact Scott + Scott partner Neil Rothstein (800/332-2259, ext. 22 or cell 619/251-0887) or attorney Amy K. Saba (800/332-2259, ext. 26). Scott + Scott, LLC will provide you with case materials, answer all questions regarding your participation and rights and assist you with other services that the firm provides. There is no cost or fee to you.
The complaint filed by Scott + Scott, LLC alleges that during the Class Period, Investors Financial and certain individual defendants caused shares of Investors Financial to trade at artificially inflated levels through the issuance of false and misleading financial statements and guidance. The complaint alleges that Investors Financial failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the CompanyÂs improper accounting practices resulted in a $6.2 million reduction in net interest income; (2) that the Company lacked adequate internal controls; (3) that the Company's financial results were in violation of Generally Accepted Accounting Principles ("GAAP"); (4) that due to the impact of interest rate yield compression and the flattening of the interest rate curve, the Company's 2005 guidance was not achievable; (5) that defendants' use of interest rate swaps to hedge against the negative impact to the balance sheet was ineffective; and (6) that as a consequence, defendants' statements with respect to the Company's growth and progress lacked in all reasonable bases when made.
On July 14, 2005, the Company announced that its 2005 and 2006 previously announced earnings guidance was not achievable. On this news, shares of Investors fell $7.47 per share, or 17.99 percent, on July 15, 2005, to close at $34.05 per share. Following Investors shocking announcement, on July 15, 2005 the price of shares plummeted, from its previous close of $41.52, for a loss of $7.47, losing 17.9% percent of their value, closing at $34.05, on unprecedented volume of over 22 million shares. Today, 45 days after the fall, shares remain in the $34 dollar range.
Plaintiff seeks to recover damages on behalf of all purchasers of Investors Financial securities during the Class Period. The plaintiff is represented by Scott + Scott, LLC, which has expertise in prosecuting investor class actions. Scott + Scott, LLC litigates cases on behalf of citizens of every nation. The firm dedicates itself to client communication and satisfaction and currently is litigating major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities worldwide.
Cases currently being litigated or investigated by Scott + Scott, LLC: RenaissanceRe; Mercury Interactive; Unisys; Immucor; Pixar; First Bancorp (Puerto Rico); Guidant; DOV Pharmaceuticals; and more.
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