Faruqi & Faruqi, LLP Announces Investigation of SAIC, Inc. (SAI)
Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at SAIC, Inc. (“SAIC” or the “Company”) (NYSE: SAI).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) SAIC had overbilled New York City hundreds of millions of dollars over a multi-year period on the CityTime Project, a project connected with the modernization of New York City’s employee payroll system; (2) SAIC’s overbilling practices subjected the Company to numerous undisclosed risks, including monetary, regulatory and reputational risks; (3) as a result of SAIC’s concealed overbilling practices, SAIC had violated the applicable accounting standards associated with the generally accepted accounting principles and recognition of revenue; and (4) as a result of SAIC’s concealed overbilling practices, the Company’s operating results during the Class Period were materially misstated.
On August 31, 2011, SAIC issued a press release announcing disappointing financial results for the second quarter of fiscal year 2012. The Company also held a conference call with analysts and investors wherein SAIC disclosed that the Company’s revenues were, in part, adversely impacted by the “wind[ing] down” of the CityTime contract and that, while the Company could not quantify the amount, it believed that it was “probable” that SAIC would have to make restitution to New York City for wrongful conduct on CityTime.
The revelation that SAIC would incur a probable loss on CityTime served as an acknowledgement that SAIC would incur a penalty charge against its earnings for the wrongful practices the Company had allegedly perpetrated with relation to CityTime. In response to this revelation, shares of SAIC common stock plummeted by nearly 14%, from $15.00 per share on August 31, 2011 to $12.97 on September 1, 2012.
If you purchased SAIC securities between April 11, 2007 and September 1, 2011 and would like to discuss your legal rights, contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org or email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding SAIC’s conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Richard W. Gonnello
Faruqi & Faruqi, LLP
685 Third Avenue 26th Floor
New York, NY 10017
Tel: (212) 983-9330
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