SAN DIEGO and CALABASAS, Calif., Aug. 4, 2014 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that an investor of NetSol Technologies, Inc. (NASDAQ: NTWK) has filed a federal securities fraud class action complaint in the U.S. District Court for the Central District of California, Western Division. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between November 12, 2009 and November 8, 2013 (the "Class Period"). NetSol designs, develops, markets, and exports software products primarily to the automobile finance and leasing, banking, healthcare, and financial services industries worldwide.
NetSol Is Accused of Misrepresenting Its Financial Condition
According to the complaint, shares of NetSol dropped 30%, to close at $5.23 on November 8, 2013, following the release of NetSol's operations and financial conditions for the quarter ended September 30, 2013. In that release, the company reported increased expenses and materially decreased earnings and revenue and a bleak financial outlook. The complaint alleges that prior to the November 8, 2013 press release, the company had previously reported strong financial conditions and touted its potential for growth, specifically in relation to its next generation of Financial Suite (NFS) products. Yet, the complaint further alleges that: (i) NetSol's next generation product was not expected to be completed when the company had originally stated; (ii) NetSol's customers were not planning to replace the old legacy system with the new system; (iii) there was no reasonable basis for stating that development of the next generation of NFS would change the landscape for NetSol and increase its demand; and (iv) all internal data pointed to a continued business decline, not the growth the company represented.
NetSol Investors Are Encouraged to Contact Shareholder Rights Law Firm Robbins Arroyo LLP
If you invested in NetSol and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the information form on the firm's shareholder rights blog: www.robbinsarroyo.com/shareholders-rights-blog/netsol-technologies-inc.
Robbins Arroyo LLP is a nationally recognized leader in securities litigation and shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP