Robbins Umeda LLP* Announces the Commencement of a Class Action Lawsuit Against CIBER, Inc.
November 1, 2011 (San Diego, CA) – Robbins Umeda LLP announces that the firm commenced a class action lawsuit on October 28, 2011, in the U.S. District Court for the District of Colorado on behalf of all persons or entities who purchased or otherwise acquired the securities of CIBER, Inc. (“CIBER” or the “Company”) (NYSE: CBR) between December 15, 2010 and August 3, 2011 (the “Class Period”). The action is against the Company and certain of the Company’s officers for violations of the Securities Exchange Act of 1934.
CIBER purports to be a global information technology consulting, services, and outsourcing company applying practical innovation through services and solutions that deliver tangible results for both commercial and government clients. CIBER is a Delaware corporation with principal executive offices located in Greenwood Village, Colorado.
The complaint alleges that beginning on December 15, 2010, the Company, along with certain officers at CIBER, issued a series of materially false and misleading statements to investors designed to deceive the market and cause shares of CIBER to trade at artificially high prices.
In particular, the complaint alleges that officials at the Company failed to disclose to investors material adverse facts that: (1) CIBER lacked the operational discipline, process, and controls to properly evaluate the financial impact of its legacy contracts and the performance of its North American operations and, as such, had no basis to make positive statements about the Company’s financial health and future growth; (2) CIBER could not achieve its reported business outlook and aggressive guidance due to the fact that unprofitable legacy fixed-price contracts would drag down the Company’s revenue and earnings; and (3) the Company’s declining sales in its North American division would continue throughout the 2011 transitional period and adversely affect the Company’s 2011 financial results.
On August 3, 2011, CIBER announced disappointing financial results for the second quarter of 2011 that showed that the Company was performing well below expectations. As a result, CIBER was forced to suspend its financial guidance for 2011. On this news, shares of CIBER lost over 23% of their value to close on August 3, 2011, at just $3.94 a share. As revelations continue to emerge, shares of CIBER continue to decline in value with the Company’s stock recently closing as low as $2.78 per share on October 3, 2011.
If you purchased or otherwise acquired CIBER stock during the Class Period and wish to serve as lead plaintiff, you must move the Court no later than 60 days from November 1, 2011. To discuss this action or have any questions concerning this notice or your rights or interests, please contact Gregory E. Del Gaizo, Esq. of Robbins Umeda LLP at 800-350-6003 or via the shareholder information form.
* The firm name changed from Robbins Umeda LLP to Robbins Arroyo LLP on January 1, 2013.