SOURCE: Abraham, Fruchter & Twersky, LLP

November 14, 2008 13:31 ET

Abraham, Fruchter & Twersky, LLP Files Class Action Lawsuit Against Internap Network Services Corp.

NEW YORK, NY--(Marketwire - November 14, 2008) - Abraham, Fruchter & Twersky, LLP has filed a class action lawsuit in the United States District Court for the Northern District of Georgia on behalf of investors of Internap Network Services Corp. ("Internap" or the "Company") (NASDAQ: INAP) who purchased the publicly traded securities of Internap between March 28, 2007 and March 18, 2008, inclusive (the "Class Period"), seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act").

The complaint charges Internap and its Chief Executive Officer with violations of the Exchange Act. Internap provides Internet connectivity solutions to business customers who require business applications such as e-commerce, video and audio streaming, customer relationship management, voice over Internet protocol, virtual private networks, and supply chain management.

The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's alleged successful integration of acquired businesses into its network and that such integration purportedly improved performance for customers, helped increase Internap's customer base and resulted in record revenues. According to the complaint, however, Internap allegedly hid from the public that its customers were experiencing sever network outages and that several hundred customers had requested account credits. The complaint alleges that because of defendants' false and misleading statements, Internap's stock traded at artificially inflated prices during the Class Period. On March 18, 2008, the Company announced, inter alia, that it would delay filing its Form 10-K Annual Report, that it would send refunds to several hundred customers and that service outages caused a reduction of revenue and caused customers to request credits. On the following day, March 19, 2008, Internap's stock price plummeted from $6.12 per share to a closing price of $4.09 per share, a decline of approximately 33%.

Plaintiffs seek to recover damages on behalf of all purchasers of Internap securities during the Class Period. Plaintiffs are represented by Abraham, Fruchter & Twersky, LLP, which has expertise in prosecuting investor class actions and extensive experience in actions involving corporate fraud. If you purchased or otherwise acquired the publicly-traded common stock of Internap during the Class Period, you may, no later than 60 days from November 14, 2008, request that the Court appoint you as lead plaintiff. If you wish to serve as lead plaintiff, you must meet certain legal requirements set forth in the applicable law and file appropriate papers with the Court. You do not need to seek appointment as a lead plaintiff in order to share in any recovery. Under certain circumstances, one or more Class members may together serve as lead plaintiff. You may retain Abraham, Fruchter & Twersky, LLP, or other counsel of your choice, to serve as your counsel in this action or you may choose to do nothing and remain an absent class member.

If you have any questions concerning this case or your rights or interests with respect to this matter, please contact plaintiffs' counsel:

Contact Information

  • Jeffrey S. Abraham, Esq.
    Lawrence D. Levit, Esq.
    Abraham, Fruchter & Twersky, LLP
    One Penn Plaza, Suite 2805
    New York, New York 10119
    Telephone (212) 279-5050
    Facsimile (212) 279-3655
    Email Contact
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