NEW YORK, July 28, 2014 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston has filed the first and only class action lawsuit and issues a corrected notice to clarify the class period. The class action is on behalf of all persons who purchased or otherwise acquired the securities of NetSol Technologies, Inc. ("NetSol" or the "Company") (Nasdaq: NTWK ) during the period between November 12, 2009 and November 8, 2013, inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws under the Securities Exchange Act of 1934 (the "Exchange Act").
The Complaint alleges that throughout the Class Period, Defendants issued materially false and/or misleading statements because: (a) NetSol's next generation product was not expected to be completed when promised by the Company; (b) serious interest in NetSol's next generation solution had not been expressed by a few global companies; (c) NetSol was not experiencing a growing interest in its next generation NFS product, and the product was not ready for testing at customer sites; (d) NetSol did not expect future growth through increased revenues from both the current version and the next generation of NFS; (e) there was no reasonable basis for stating that development of the next generation of NFS would change the landscape for NetSol and increase both demand and the market; (f) NetSol did not have a reasonable basis for stating that its target customers who were still using old systems for maintaining their lease and finance portfolios were planning to replace their legacy systems or that NetSol was in a good position to tap new business from these companies; and (g) all internal data pointed to a continued business decline; not "growth and strength across the business" as represented by the Company.
Upon dissemination of the Company's November 8, 2013 disclosures, its stock dropped 30% from a closing price of $7.48 on February 7, 2013 to a closing price $5.23 on February 8, 2013 in an inordinate volume of trading.
If you wish to serve as lead plaintiff, you must move the Court no later than September 23, 2014. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at tjmckenna@gme-law.com or gegleston@gme-law.com .
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