Intrenet, the Ohio-based flatbed company that ceased operating Jan. 2, is being targeted in a lawsuit by shareholders who are accusing the company of stock fraud.

The class action lawsuit is being filed by the Boston law firm of Berman DeValerio & Pease LLP.
The lawsuit seeks damages for violations of federal securities laws on behalf of all investors who bought Intrenet stock between February 19,1999, and October 13, 2000.
The complaint accuses Intrenet and two of its top officers of filing materially false and misleading financial statements for 1998 and 1999. During that time, the company improperly inflated net income by about $1.3 million. The defendants either knew of these improper accounting practices or recklessly disregarded them, the complaint says.
Last October, the company issued a press release saying it was investigating possible accounting irregularities at its Advanced Distribution System subsidiary that could result in a restatement of Intrenet's 1998 and 1999 financial statements, as well as for the first and second quarters of 2000. Nasdaq Stock Market officials suspended trading in Intrenet stock. Then, on January 2, 2001, Intrenet said it would cease operations of the company and all its subsidiaries for lack of funding.
0 Comments