The Florida State Board of Administration, Tallahassee, and the Louisiana State Employees Retirement System, Baton Rouge, filed a class-action lawsuit against Sykes Enterprises, claiming the information technology company understated second- and third-quarter 1999 earnings, causing substantial losses for investors.
The suit by the pension systems, filed in U.S. District Court in Tampa, Fla., accuses Sykes of securities fraud by improperly recognizing inflated revenue and earnings, which were subsequently restated, resulting in losses of $960,000 to the $5 billion Louisiana system and $825,000 to the $77 billion Florida board. Plaintiffs lawyer Steven Singer said the class-action members could number in the thousands.
A Sykes spokesman said the company had no comment on the motion. A hearing date on the class-action motion has not been set.