NEW YORK, July 16, 2019 /CNW/ -- Pomerantz LLP is investigating claims on behalf of investors of Intelligent Systems Corporation ("Intelligent Systems" or the "Company") (NYSE: INS). Such investors are advised to contact Robert S. Willoughby at [email protected] or 888-476-6529, ext. 9980.
The investigation concerns whether Intelligent Systems and certain of its officers and/or directors have engaged in securities fraud or other unlawful business practices.
On May 23, 2019, post-market, MiMedx Group, Inc. ("MiMedx") disclosed that an investigation conducted by its audit committee found that Parker H. Petit, a Director of Intelligent Systems and a member of Intelligent Systems' Audit Committee, had engaged in accounting fraud during his tenure as Chief Executive Officer ("CEO") of MiMedx. MiMedx stated, in part, that Petit's misconduct included overseeing an internal investigation conducted for the purpose of discrediting whistleblowers who raised concerns about MiMedx's practices, and that Petit's behavior was so egregious that the possibility that he would be elected to MiMedx's Board of Directors made it difficult for MiMedx to engage an independent auditor.
On May 24, 2019, pre-market, Aurelius Value published a report entitled "INS: A Wolf in Pete's Clothing." The report discussed MiMedx's disclosures concerning Petit, and also accused Intelligent Systems' CEO, J. Leland Strange, of having engaged in undisclosed related-party transactions with Petit and others and of having an undisclosed personal relationship with Intelligent Systems' auditor, Nicolas Cauley. On this news, Intelligent Systems' stock price fell $4.18 per share, or 10.69%, to close at $34.93 per share on May 24, 2019.
Then, on May 30, 2019, pre-market, Grizzly Research LLC issued a report entitled "Intelligent Systems Corp: Material Undisclosed Related Party Transactions Cast Doubt on the Integrity of Financial Statements." The report presented evidence that Intelligent Systems "has its employees set up or take control of undisclosed shell companies in Asia, who then partake in undisclosed related party transactions with [Intelligent Systems] intended to either round-trip revenue back to [Intelligent Systems] or siphon money out of the company." The report further stated that "there is a possibility that all revenue growth since January 2018 has been a result of undisclosed round-trip transactions with Indian related parties." On this news, Intelligent Systems' stock price fell $6.82 per share, or 20.17%, to close at $26.99 per share on May 30, 2019.
The Pomerantz Firm, with offices in New York, Chicago, Los Angeles, and Paris, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 80 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
SOURCE Pomerantz LLP