TAMPA, Fla. -- The Louisiana State Employees Retirement System and the Florida State Board of Administration have filed a class-action lawsuit against Sykes Enterprises Inc., Tampa, claiming the information technology company overstated second- and third-quarter earnings.
Attorneys for the pension funds filed a motion in U.S. District Court in Tampa seeking appointment as lead plaintiffs in a class action against Sykes, said Steven Singer of Bernstein Litowitz Berger & Grossmann LLP, New York, which represents both pension funds.
The motion claims Sykes committed securities fraud by improperly recognizing inflated revenue and earnings in the second and third quarters of 1999, which were subsequently restated, resulting in losses of $960,000 for LASERS and of $825,000 for the Florida fund.
Mr. Singer said the action involves those who bought the stock between April 1, 1999, and Feb. 6.
A spokesman for Sykes said the company had no comment.
In its 1999 annual earnings statement, Sykes said second- and third-quarter earnings were being revised because of delayed revenue recognition connected with "certain software and service contracts."
The Sykes statement said second-quarter net income was pared by $7.5 million to $4 million, while third-quarter net was trimmed by $9.8 million to $4.3 million. The company also restated second-quarter revenue to $134.1 million from $146.1 million and third-quarter revenue to $141 million from $161 million.