Stockholders v Input/Output Inc.
Input/Output Stockholder Sue for $86M in Lost Stock Value
A class action has been filed against Input/Output Inc. (NYSE:IO), a TX based provider of seismic acquisition imaging technology, and certain of its officers and directors by stockholders who purchased the company's common stock between May 10, 2004 and January 4, 2005. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.
Specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them:
• that the integration of GX Technology Corporation (GXT) and Input/Output had failed,
• that the GXT project pipeline lacked in volume;
• that Input/Output's business development group was suffering from poor management execution;
• that the Company had poor internal growth,
• that as a result of the above, the defendants' statements about the Company were lacking in any reasonable basis when made.
On January 4, 2005, the Company issued a press release and announced that fourth quarter results would be significantly below the low end of the Company's guidance of $0.08 per share primarily because two high margin GXT data library sales were not completed as expected. This announcement caused the Company's shares to fall $1.41 per share, or about 17 percent.
