November 18, 2019 - An amended complaint was filed.
July 9, 2019 - An investor in shares of Intelligent Systems Corporation (NYSE: INS) filed a lawsuit in the U.S. District Court for the Eastern District of New York over alleged violations of Federal Securities Laws by Intelligent Systems Corporation in connection with certain allegedly false and misleading statements made between January 23, 2019 and May 29, 2019.
Norcross, GA based Intelligent Systems Corporation, through its subsidiary, CoreCard Software, Inc., provides technology solutions and processing services to the financial technology and services market in the United States and European Union. On May 24, 2019, a report was published alleging that the financial expert of the Company’s Audit Committee had engaged in improper accounting practices and that its Chief Executive Officer had engaged in numerous undisclosed related party transactions.
Shares of Intelligent Systems Corporation (NYSE: INS) declined from $48.93 per share on May 6, 2019 to as low as $25.00 per share on May 27, 2019.
According to the complaint the plaintiff alleges on behalf of purchasers of Intelligent Systems Corporation (NYSE: INS) common shares between January 23, 2019 and May 29, 2019, that the defendants violated Federal Securities Laws. More specifically, the plaintiff claims that between January 23, 2019 and May 29, 2019, the defendants made false and/or misleading statements and/or failed to disclose that Defendant Petit, the “financial expert” on Intelligent Systems’ Audit Committee engaged in accounting fraud as the CEO of MiMedx Group, Inc, that Intelligent Systems’ CEO, Defendant Strange, engaged in undisclosed related-party transactions with Defendant Petit and others and had an undisclosed personal relationship with the Company’s auditor, that Intelligent Systems had its employees set up or take control of shell companies in Asia so they could partake in undisclosed related-party transactions for the purpose of either fabricating revenue for the Company and/or siphoning money out of the Company, and that as a result, defendants’ statements about Intelligent Systems’ business, operations, and prospects were materially false and/or misleading and/or lacked a reasonable basis at all relevant times
On July 9, 2019, NYSE: INS shares closed at $32.24 per share.