SMART Technologies Inc hit by investor lawsuit over alleged securities laws violations

Dec. 6, 2010 - PRLog -- An investor in SMART Technologies Inc  filed a lawsuit in the United States District Court for the Southern District of New York against SMART Technologies, Inc over alleged violations of Federal Securities Laws.

If you purchased SMART Technologies Inc  common stock pursuant to its July 2010 Initial Public Offering of 38.83 million shares of common stock, that closed on July 20, 2010, you have certain options and there are strict and short deadlines running. Deadline: February 01, 2011. Those SMT investors and those who have any information relating the lawsuit and its allegations including also whistleblowers and former employees, should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

According to the complaint the plaintiff alleges that SMART Technologies Inc, its entire Board of Directors, its Chief Financial Officer, and certain Underwriters involved in the July 2010 Initial Public Offering of 38.83 million shares of common stock, that closed on July 20, 2010, included or allowed the inclusion of materially false and misleading statements in the Registration Statement and Prospectus issued in connection with its July 2010 Initial Public Offering in direct violation of the Securities Act of 1933. Specifically, the complaint alleges that defendants each failed to conduct an adequate due diligence investigation into SMART Technologies Inc  prior to the July 2010 IPO, and they also each failed to reveal, at the time the July 2010 IPO closed – which occurred almost one third of the way through the fiscal second quarter of 2011, the period ended September 30, 2010 – that SMART Technologies was not proceeding according to plan and that SMART Technologies' sales already had been adversely impacted by a slowdown during fiscal 2Q:11 which would make it impossible for SMART Technologies to achieve its projected rates of growth, earnings, revenues, and profits. Shares of SMART Technologies Inc (Public, NASDAQ-SMT) traded in July over $16 and decreased throughout August to $10.50 per share in September. SMT shares were able to regain some value and traded in October as high as $14.67 per share.
Then on November 10, 2010, Smart Technologies, Inc. reported its second quarter financial result for the period ended September 30, 2010.  For the quarter, the Company reported three months revenue of $222.7 million and adjusted profits of $0.33 per share, missing analysts expectations for revenue of $233.8 million and profits of $0.24 per share after adjustments.  Smart Technologies, Inc stated as follows: “While the company continues to execute at a high level, we have seen slower than anticipated sales in our recently acquired NextWindow business and are factoring in a more conservative growth assumption for the North American market in the second half of our fiscal year.”

On November 10, 2010, Smart Technologies’ common stock (SMT) decreased by $4.16 per share, or 32%, to close at $8.91 per share. The following trading day SMT shares closed at $8.70 per share. SMT shares closed on Friday Nov 12 at $8.42 per share.

Those who purchased SMART Technologies Inc  common stock pursuant to its July 2010 Initial Public Offering of 38.83 million shares of common stock, that closed on July 20, 2010, have certain options and there are strict and short deadlines running. Deadline: February 01, 2011. Those SMT investors and those who have any information relating the lawsuit and its allegations including also whistleblowers and former employees, should contact the Shareholders Foundation at mail@shareholdersfoundation.com or call +1(858) 779 - 1554.

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The Shareholders Foundation, Inc. is an investor advocacy group. We do research related to shareholder issues and inform investors of securities class actions, settlements, judgments, and other legal related news to the stock/financial market. At Shareholders Foundation, Inc. we are in contact with a large number of shareholders. We believe that together we can combine the interests of many investors, and use the size of our interest as leverage against the giant corporations. We offer help, support, and assistance for every shareholder. We help investors find answers to their questions and equitable solutions to their problems. The Shareholders Foundation, Inc. is not a law firm. The information is provided as a public service. It is not intended as legal advice and should not be relied upon.