San Diego, CA -- (SBWIRE) -- 03/20/2012 -- 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 shares SAIC, Inc. (NYSE:SAI), have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The plaintiff alleges alleged kickback scheme involving contractors tied to New York's CityTime project caused $232 million in losses and led to the indictments of several of SAIC employees.
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.
In December 2010, the U.S. Attorney's Office for the Southern District of New York filed a criminal complaint against six individuals. In May 2011, an indictment was unsealed against a former project manager for SAIC and another criminal complaint was filed against a former SAIC employee.
In July, 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.
In August 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 in October 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.
On March 14, 2012, SAIC announced that it has reached a settlement with the U.S. Attorney for the Southern District of New York and the City of New York concerning the CityTime automated workforce management system. SAIC said that under the terms of the settlement, it will pay $500.4 million in restitution and penalties, and an independent monitor will be appointed by the United States Attorney's Office for three years to review certain Company policies and practices.
Shares of SAIC, Inc. (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. (NYSE:SAI) have certain options and should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego