Robbins Umeda LLP Announces an Investigation of GTSI Corp.
Robbins Umeda LLP, a shareholder rights litigation firm, has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at GTSI Corp. (NASDAQ GM: GTSI). GTSI engages in selling information technology products and solutions to departments and agencies in the U.S. federal government, state and local governments, and prime contractors. The company was founded in 1983 and is headquartered in Herndon, Virginia.
Robbins Umeda LLP’s investigation concerns whether the officers and directors of GTSI issued materially false and misleading statements regarding GTSI’s business, operations, and prospects. Specifically, our investigation concerns GTSI’s alleged use of smaller companies to obtain government contracts that ordinarily would not be available to it due to its size.
On October 1, 2010, GTSI announced that it received notice from the U.S. Small Business Administration (“SBA”) that it was temporarily suspended from any future contract awards from the federal government and from directly or indirectly receiving the benefits of federal assistance programs. The Washington Post reported that the suspension concerned allegations that GTSI was an active participant in a scheme that resulted in contracts set-aside for small businesses being awarded to ineligible contractors. On October 4, 2010, when the market reopened, upon news of this announcement, GTSI’s stock price dropped from $7.25 per share to $4.35. Furthermore, on October 19, 2010, GTSI announced that it reached an agreement with the SBA to lift the federal contract suspension. Under the terms of the agreement, GTSI agreed to immediately cease working with small businesses serving as prime contractors. In addition, the U.S. Attorney’s Office for the Eastern District of Virginia is currently reviewing GTSI’s conduct related to the SBA suspension.
If you purchased GTSI common stock between January 1, 2007 and October 1, 2010 and would like more information about your rights as a shareholder, please contact attorney Gregory E. Del Gaizo at 800-350-6003 or by e-mail at email@example.com.