Wolf Haldenstein Adler Freeman & Herz LLP Commences Class Action Lawsuit on Behalf of Investors in iMergent, Inc.
April 08 2005 - 6:13PM
PR Newswire (US)
Wolf Haldenstein Adler Freeman & Herz LLP Commences Class
Action Lawsuit on Behalf of Investors in iMergent, Inc. NEW YORK,
April 8 /PRNewswire/ -- Wolf Haldenstein Adler Freeman & Herz
LLP filed a class action lawsuit in the United States District
Court for the District of Utah, on behalf of all persons who
purchased the securities of iMergent, Inc. ("iMergent" or the
"Company") [Amex: IIG] between October 26, 2004 and February 25,
2005, inclusive, (the "Class Period") against defendants iMergent
and certain officers and directors of the Company. The case name is
Enuganti v. iMergent, Inc., et al. A copy of the complaint filed in
this action is available from the Court, or can be viewed on the
Wolf Haldenstein Adler Freeman & Herz LLP website at
http://www.whafh.com/. The complaint alleges that defendants
violated the federal securities laws by issuing materially false
and misleading statements throughout the Class Period that had the
effect of artificially inflating the market price of the Company's
securities. The complaint alleges that defendants were aware of but
concealed from the investing public during the Class Period, were
as follows: (i) the Company's storefront software was defective;
(ii) iMergent was extorting from its customers thousands of dollars
in additional fees for technical support, characterized as
"executive mentoring," above and beyond what customers contracted
to pay as part of their service packages when they purchased the
storefront software; (iii) since at least 2000, numerous customers
had lodged complaints with various state agencies concerning
defects with the storefront software and the exorbitant "executive
mentoring" fees charged; (iv) the Company's storefront software and
service packages were being illegally marketed as "franchises" or
"business opportunities" because iMergent was not registered to
engage in this type of business in the states in which it was
operating and was not following the statutes applicable to
companies that market franchises and business opportunities in
those states; (v) the Company was extending credit to customers
with subprime credit without disclosing that the Company did not
require these customers to meet the Company's credit criteria; (vi)
the Company was entering into installment sale contracts for
defective storefront software packages, with the knowledge that the
defects in the software, the difficulty of its use, and the refusal
of some customers to purchase so-called "executive mentoring"
(needed to operate the software) would lead to higher customer
dissatisfaction, product rejections, refusals to pay for product
packages being financed by the Company, and complaints to and legal
action by federal and state authorities; and (vii) defendants had
concealed that iMergent had been subjected to a lawsuit and a cease
and desist order by the State of Washington in early 2004
concerning misconduct similar to that alleged by the State of Texas
in its February 2005 lawsuit. If you purchased iMergent securities
during the Class Period, you may request that the Court appoint you
as lead plaintiff by May 9, 2005. A lead plaintiff is a
representative party that acts on behalf of other class members in
directing the litigation. In order to be appointed lead plaintiff,
the Court must determine that the class member's claim is typical
of the claims of other class members, and that the class member
will adequately represent the class. Under certain circumstances,
one or more class members may together serve as "lead plaintiff."
Your ability to share in any recovery is not, however, affected by
the decision whether or not to serve as a lead plaintiff. You may
retain Wolf Haldenstein, or other counsel of your choice, to serve
as your counsel in this action. Wolf Haldenstein has extensive
experience in the prosecution of securities class actions and
derivative litigation in state and federal trial and appellate
courts across the country. The firm has approximately 60 attorneys
in various practice areas; and offices in Chicago, New York City,
San Diego, and West Palm Beach. The reputation and expertise of
this firm in shareholder and other class litigation has been
repeatedly recognized by the courts, which have appointed it to
major positions in complex securities multi-district and
consolidated litigation. If you wish to discuss this action or have
any questions, please contact Wolf Haldenstein Adler Freeman &
Herz LLP at 270 Madison Avenue, New York, New York 10016, by
telephone at (800) 575-0735 (Fred Taylor Isquith, Esq., Gregory M.
Nespole, Esq., Christopher S. Hinton, Esq., or Derek Behnke), via
e-mail at or visit our website at http://www.whafh.com/. All e-mail
correspondence should make reference to iMergent. DATASOURCE: Wolf
Haldenstein Adler Freeman & Herz LLP CONTACT: Fred Taylor
Isquith, Esq., Gregory M. Nespole, Esq., Christopher S. Hinton,
Esq., or Derek Behnke, all of Wolf Haldenstein Adler Freeman &
Herz LLP, 1-800-575-0735 Web site: http://www.whafh.com/
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