San Diego, CA -- (SBWIRE) -- 02/14/2012 -- The Shareholders Foundation announces that an investor in shares of SAIC, Inc. (NYSE:SAI) filed a lawsuit against directors of Saic over alleged breaches of fiduciary duties in connection with alleged irregularities with the CityTime project.
Investors who purchased shares SAIC, Inc. (Public, NYSE:SAI), have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
Since 2000, SAIC, Inc has developed and implemented an automated timekeeping and workforce management system ("CityTime") for certain agencies of the City of New York.
Then in December 2010, the U.S. Attorney's Office for the Southern District of New York filed a criminal complaint against six individuals.
On May 26, 2011, an indictment was unsealed against a former project manager for SAIC. The indictment against project manager alleged that he received more than $5 million in illegal kickbacks. Another former SAIC employee, who was the chief systems engineer on the project, has pleaded guilty to wire-fraud conspiracy, wire fraud, and money-laundering conspiracy. On May 27, 2011, another criminal complaint was filed against a former SAIC employee over allegations that the former employee conspired to defraud the City into extending the duration and overpaying for the CityTime project. The former employee allegedly received kickbacks totaling $5.6 million. On June 2, 2011, SAIC disclosed in a regulatory filing the criminal investigation by the U.S. Attorney for the Southern District of New York and revealed new details of its internal investigation of the Citytime project.
Then on July 1, 2011, SAIC Inc disclosed that on June 29, 2011, SAIC Inc received a letter from Mayor Bloomberg which requested that SAIC Inc reimburse the city for the approximately $600 million paid by the city to SAIC Inc. for CityTime and the cost of investigating and remediating the CityTime program.
On August 31, 2011, SAIC Inc. disclosed financial results for the quarter ended July 31, 2011 that were materially lower than expected by analysts. Among other things, SAIC Inc. also announced that it materially lowered its financial guidance for fiscal 2012 revenue and earnings.
Then on October 24, 2011, SAIC Inc disclosed in a filing with the SEC that, among other things, the employment of several senior officers at SAIC Inc was terminated due to failures of management with respect to the CityTime program.
Shares of SAIC, Inc. (Public, NYSE:SAI) fell from over $17.50 per share in May 2011 to as low as $11.26 per share in November 2011.
Those who purchased shares SAIC, Inc. (Public, NYSE:SAI), have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
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