| Company: | The Descartes Systems Group Inc. |
| Ticker Symbol: | NASD: DSGX |
| Class Period: | June 4, 2003 to May 6, 2004 |
| Court: | Southern District, NY |
| Date Filed: | May-19-04 |
| Lead Plaintiff Deadline: | Jul-19-04 |
| Allegations: |
A class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of purchasers of The Descartes Systems Group Inc. (Nasdaq: DSGX - News; Toronto: DSG - News; "Descartes" or the "Company") common stock during the period between June 4, 2003 and May 6, 2004, inclusive (the "Class Period").
The complaint charges that Descartes, Manuel Pietra and Colley Clarke violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between June 4, 2003 and May 6, 2004, about its financial condition, thereby artificially inflating the price of Descartes' stock. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company had materially inflated its financial results; (2) that the Company maintained insufficient reserves for doubtful accounts, in light of the fact that the Company knew and/or recklessly disregarded the fact that it was having extreme difficulties in collecting receivables especially in the Asia- Pacific Region; (3) that the Company had overstated its revenues by at least $1.1 million by recognizing revenues from a significant contract with a customer in China that was impaired by regulatory action of the Chinese Government, a fact the Company knew and/or recklessly disregarded; (4) that the Company had failed to take sufficient write downs of assets that it had determined to be impaired; (5) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (6) that as a result, the value of the Company's net income and financial results were materially overstated at all relevant times.
On May 6, 2004, after the markets had closed, Descartes announced that its revenues and loss per share for the three months ended April 30, 2004 will be materially below the expectations set forth in its March 10, 2004 press release. News of this shocked the market. Shares of Descartes fell $0.76 per share, or 38.97 percent, to close at $1.19 per share on May 7, 2004.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The complaint charges that Descartes, Manuel Pietra and Colley Clarke violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between June 4, 2003 and May 6, 2004, about its financial condition, thereby artificially inflating the price of Descartes' stock. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company had materially inflated its financial results; (2) that the Company maintained insufficient reserves for doubtful accounts, in light of the fact that the Company knew and/or recklessly disregarded the fact that it was having extreme difficulties in collecting receivables especially in the Asia- Pacific Region; (3) that the Company had overstated its revenues by at least $1.1 million by recognizing revenues from a significant contract with a customer in China that was impaired by regulatory action of the Chinese Government, a fact the Company knew and/or recklessly disregarded; (4) that the Company had failed to take sufficient write downs of assets that it had determined to be impaired; (5) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (6) that as a result, the value of the Company's net income and financial results were materially overstated at all relevant times.
On May 6, 2004, after the markets had closed, Descartes announced that its revenues and loss per share for the three months ended April 30, 2004 will be materially below the expectations set forth in its March 10, 2004 press release. News of this shocked the market. Shares of Descartes fell $0.76 per share, or 38.97 percent, to close at $1.19 per share on May 7, 2004.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
If you feel you qualify for damages or remedies that might be awarded in this class action please fill in our form on the right to submit your complaint.
If your injustice does not match the complaint described above, please use this form to register your complaint. Thank you.
