Friday, June 12, 2009

Starteks in Trouble... Gets Sued!

A class action has been filed against StarTek, Inc. (NYSE:SRT), certain of its officers and directors by stockholders who purchased the company's common stock between February 26, 2003 and May 05, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.

According to a press release dated July 8, 2005, the complaint alleges that the Company and certain of its officers and directors, violated federal securities laws. Specifically, defendants issued false statements concerning strong existing demand for StarTek's outsourced services from four of the Company's customers that accounted for 90% of StarTek's revenue, the Company's healthy sales pipeline and the completion of a management transition and restructuring plan, which artificially inflated StarTek's stock price during the Class Period. On May 6, 2005, StarTek announced that its first quarter 2005 earnings per share from continuing operations decreased to $0.18 compared to $0.49 for the first quarter of 2004. The Company also announced that its revenues declined 14.2% from the same period in 2004. On this news, StarTek's stock price fell over 18% from a close of $15.20 on May 5, 2005 to $12.40 on May 6, 2005.
If you bought StarTek, Inc. securities between February 26, 2003 and May 05, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney.