NEW YORK, April 9 – LAWFUEL – The Law News Network — 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
classmember@whafh.com or visit our website at http://www.whafh.com. All e-mail
correspondence should make reference to iMergent.
Web Site: http://www.whafh.com
