SAIC, Inc. SAI Securities Stock Fraud

Company:	SAIC, Inc.
Ticker Symbol:	SAI
Class Period:	Apr-11-07 to Sep-1-11
Date Filed:	Feb-22-12
Lead Plaintiff Deadline:	Apr-22-12
Court:	Southern District of New York
Allegations:

New York, NY: A securities class action lawsuit has been commenced on behalf of an institutional investor in the United States District Court for the Southern District of New York on behalf of purchasers of SAIC, Inc. ("SAIC") common stock during the period between April 11, 2007 and September 1, 2011 (the "Class Period").

The complaint charges SAIC and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The Company focuses its business on providing defense, intelligence, homeland security, logistics, energy, environment, and heath solutions and services to federal, state and local government agencies, foreign governments and customers in select commercial markets.

The complaint alleges that during the Class Period defendants issued materially false and misleading statements regarding the Company's financial performance and future prospects. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts: (a) that SAIC had overbilled New York City hundreds of millions of dollars on the CityTime Project, a project associated with the modernization of New York City's employee payroll system, over a multi-year period; (b) that, as a result of SAIC's known, but undisclosed, overbilling practices, its operating results during the Class Period were materially misstated; (c) that SAIC's overbilling practices subjected the Company to numerous undisclosed risks, including monetary risks and reputational risks, particularly because government agencies are SAIC's primary customers and any harm to its reputation and/or relationships with such agencies would adversely affect its future revenues and growth prospects; (d) that, as a result of the foregoing circumstances, SAIC violated applicable accounting standards associated with the recognition of revenue and the disclosure and accounting for loss contingencies; (e) that the Company's financial statements were not fairly presented in conformity with generally accepted accounting principles and were materially false and misleading; (f) that certifications issued by defendants Kenneth C. Dahlberg and Mark W. Sopp associated with the Company's internal and disclosure controls were materially false and misleading; and (g) that, based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company and its business and prospects. On August 31, 2011, SAIC issued a press release announcing its financial results for its 2012 second quarter, the period ended July 31, 2011. For the quarter, SAIC reported an approximate 6% decline in revenue and a 23% decline in operating margin.

Following the Company's 2012 fiscal second quarter earnings announcement, defendants held a conference call with analysts and investors wherein defendants 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 was significant because, pursuant to applicable accounting rules, it served as an acknowledgement that, once the Company could reasonably estimate the amount, SAIC would incur a charge against its earnings for the wrongful conduct alleged herein on CityTime.

In response to this revelation, shares of SAIC common stock plummeted nearly 14%, from $15.00 per share on August 31, 2011 to $12.97 on September 1, 2012, as the artificial inflation came out of the Company's stock price.

If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.

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Published on Feb-23-12