San Diego, CA -- (SBWIRE) -- 09/12/2012 -- An investigation on behalf of investors in shares of Sify Technologies Limited (ADR) (NASDAQ:SIFY) concerning possible breaches of fiduciary duties by certain officer and directors of Sify Technologies Limited in connection with certain financial statements.
Investors who purchased shares of shares of Sify Technologies Limited (ADR) (NASDAQ:SIFY) shares prior to July 21, 2012, have certain options and should contact the Shareholders Foundation at mail(at)shareholdersfoundation.com or call +1(858) 779 - 1554.
The investigation by a law firm focuses on possible claims on behalf of purchasers of the securities of Sify Technologies Limited (ADR) (NASDAQ:SIFY) concerning whether certain statements by Sify Technologies Limited regarding its business, its prospects and its operations were materially false and misleading at the time they were made.
Sify Technologies Limited (ADR) (NASDAQ:SIFY) reported that its Total Revenue rose from over $6.16 billion for the 12 months period ended on March 31, 2009 to over $7.69 billion for the 12 months period that ended on March 31, 2012, and its Net Loss over the respective time periods decreased from $900.57 million to $383.34 million.
Shares of Sify Technologies Limited (ADR) (NASDAQ:SIFY) grew from as low as $0.61 per share in March 2009 to as high as $8.25 per share on April 29, 2011.
NASDAQ:SIFY declined in the first half of 2012 from slightly over $5 in January to as low as $1.97 per share in mid-June. In Early July NASDAQ:SIFY shares reached $2.50 per share.
However, then on July 22, 2012, a media report said it discovered that the share count for Sify Technologies Limited was 53 million implying a market value of roughly $300 million, while the real number of shares, however, is 178 million. After an inquiry Nasdaq updated its figure, so Sify Technologies Limited suddenly has a market cap of about $1 billion.
The media report said the reason for the discrepancy was the lag in disclosure requirements for foreign firms.
The media report said that Sify Technologies Limited last filed a complete set of financial statements with the U.S. Securities and Exchange Commission (“SEC”) on Nov. 30, 2011.
They covered the fiscal year ended March 2010, at which point Sify's share count was 53 million. But last fall, Sify Technologies Limited shareholders approved the issuance of an additional 125 million shares to an investor group affiliated with the chief executive and his brother, at a 70% discount to the market price. At the time, the CEO and his brother owned 53% of Sify Technologies Limited stock.
NASDAQ:SIFY shares fell from $2.50 in early July to $2.12 in late July and continued to decline to as low as $2.04 per share on August 24, 2012.
On September 11, 2012, NASDAQ:SIFY shares closed at $2.65 per share, less than 50% of its current 52 week High of $6.45 per share.
Those who purchased shares of shares of Sify Technologies Limited (ADR) (NASDAQ:SIFY) shares prior to July 21, 2012, have certain options and you should contact the Shareholders Foundation.
Shareholders Foundation, Inc.
3111 Camino Del Rio North - Suite 423
92108 San Diego