Inteliquent, Inc. Sued by Investor
Robbins Arroyo LLP announce that an investor in Inteliquent, Inc. (NASDAQ: IQNT) (“Inteliquent”) has filed a complaint in the U.S. District Court for the Northern District of Illinois. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between May 7, 2012 and August 7, 2013 (the “Class Period”).
Inteliquent Accused of Making False and Misleading Statements
According to the complaint, Inteliquent lacked adequate internal controls over its financial reporting, and provided false and misleading forecasts of its financial results. Specifically, Inteliquent officials made false and/or misleading statements and/or failed to disclose that: (1) the impairment of goodwill, intangibles, and long-lived assets had been overstated; (2) the company had improper financial forecasting practices; and (3) the company lacked adequate internal and financial controls. In particular, the complaint alleges that Inteliquent materially misstated an impairment charge of $78.1 million for the fiscal year ended December 31, 2012.
Inteliquent’s Stock Price Drops on News of Overstated Impairment Charge
According to the complaint, on August 8, 2013, Inteliquent disclosed that during the second quarter of 2013, its Board of Directors determined that an internal investigation of the possible overstatement of the impairment charge should be conducted by the company’s Audit Committee with the assistance of outside counsel. The committee also investigated the company’s forecasting practices during the fourth quarter of 2012 and the first quarter of 2013. On this news, Inteliquent stock declined $1.72 per share, or over 21%, to close at $6.29 per share on August 8, 2013.
If you invested in Inteliquent and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003 or you can complete the form below and we will contact you directly.