UNITED STATES DISTRICT COURT
FOR THE NORTHERN DISTRICT OF GEORGIA
)
JAMES CHARLES, on behalf of himself and ) No.
all others similarly situated, )
Plaintiff, )
)
vs. )
) ) JURY TRIAL DEMANDED
PROFIT RECOVERY GROUP )
INTERNATIONAL, INC., JOHN M. )
COOK and SCOTT L. COLABUONO ) )
Defendants. )
Plaintiff, individually and on behalf of all other persons similarly situated, by his
undersigned attorneys, alleges upon personal knowledge as to himself and his own
acts, and upon information and belief as to all other matters, based upon, inter alia,
the investigation conducted by and through his attorneys, which included, among
other things, a review of the public documents and announcements, Securities and
Exchange Commission ("SEC") filings, and press releases regarding Profit
Recovery Group International, Inc. ("PRGX" or the "Company"), as follows:
NATURE OF THE ACTION
1. This is a class action on behalf of all persons who purchased common stock of
PRGX within the period of February 16, 2000 through March 29, 2000, inclusive,
(the "Class Period"), to recover damages caused by defendants' violations of the
federal securities laws. During the Class Period, defendants issued to the investing
public false and misleading press releases concerning the Company's publicly-
reported revenues and earnings.
2. On February 16, 2000, PRGX issued a press release announcing "Another
Outstanding Year and Quarter with 1999 Financial Results. " The Company
announced an increase in earnings per share of 76% for the fourth quarter and
107% for the year. However, the "outstanding" news was short lived. After the
close of trading on March 29, 2000, PRGX announced that it was "revising" its
previously announced results for the fourth quarter of 1999, decreasing revenue by
$1.4 million and reducing earnings per share from $0.31 to $0.29. As a result,
PRGX failed to meet stock market analysts' consensus earnings estimates for the
SNIPPETS:
Exchange Commission filings,
PRGX within the period of February 16, 2000 through March 29, 2000, inclusive,
federal securities laws.
defendants issued to the investing
This Court has jurisdiction over the subject matter of this action pursuant to Section 27 of
Many of the acts and transactions constituting the violations of law alleged herein,
In connection with the acts, transactions, and conduct alleged herein, defendants, directly
Plaintiff James Charles purchased shares of PRGX common stock as set forth on the
During the Class Period, PRGX's common stock was actively traded on the NASDAQ exchange.
Defendant John M. Cook was, at all relevant times, the Chairman and Chief Executive Officer
Cook knew or recklessly disregarded the adverse, non-public information about PRGX's
meetings of the board of directors, management and committees thereof, and reports and other
Nevertheless, the Individual Defendants, who had access to material non-public information,
Each Defendant is liable as a primary violator, for making materially false and misleading
The fraudulent scheme was designed to and did: deceive the investing public, including
Plaintiff brings this action as a class action pursuant to Federal Rules of Civil Procedure
whether the federal securities laws were violated by Defendants' acts as alleged herein;
whether the Company issued false and misleading financial statements during the Class Period;
Defendants made public misrepresentations or failed to disclose material facts during the
Plaintiff and members of the Class purchased their PRGX stock between the time Defendants
stock market analysts were expecting PRGX to achieve 1999 fourth quarter earnings of $.30 per
Throughout the Class Period, PRGX acted through the Individual Defendants, whom it put forth
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