SOURCE: Johnson & Perkinson

March 06, 2008 15:36 ET

Johnson & Perkinson Announces Commencement of Class Action Litigation Naming TeleTech Holdings, Inc.

SOUTH BURLINGTON, VT--(Marketwire - March 6, 2008) - Johnson & Perkinson hereby announces the commencement of a class action lawsuit naming TeleTech Holdings, Inc. ("TeleTech" or the "Company") (NASDAQ: TTEC). The action, docket numbered 08-CV-0913, was filed in the United States District Court for the Southern District of New York. Individuals, families, trusts or other entities that purchased TeleTech securities between February 8, 2007 and November 8, 2007, inclusive, have the opportunity to meaningfully participate as Lead Plaintiffs in the currently pending class action litigation against the Company. To do so, you must apply to serve in that capacity by March 25, 2008.

Johnson & Perkinson, a litigation boutique law firm based in South Burlington, Vermont, has extensive experience prosecuting investor class actions and actions involving financial fraud. Attorneys Johnson and Perkinson are both former employees of the Securities and Exchange Commission. Dedicated to maximizing shareholder return, members of Johnson & Perkinson have prosecuted complex class actions alleging securities or consumer fraud/deception on behalf of investors/consumers against numerous public companies since 1985, resulting in the recovery of many hundreds of millions of dollars, and have been singled out for excellence by various courts. The firm is litigating, or has recently resolved litigation, as Lead or Co-Lead Counsel in securities class actions against Xerox, Priceline, Wireless Facilities, i2 and Xchange, and serves on the Executive Committee in the Global Crossing case.

The pending Complaint alleges that TeleTech and certain of its officers and directors with violated the Securities Act of 1933 and the Securities Exchange Act of 1934. More 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: (1) that the Company's financial statements were overstated; (2) that specifically, the Company improperly accounted for compensation expenses and in doing so, backdated tens or hundreds of millions of dollars in options granted to executives between 1999 and 2007; (3) that the financial statements (including those presented in the Registration Statement), were overstated because the Company under-reported its employment taxes and compensation expenses, as well as its reserves, and over-reported its earnings and gross margins and failed to make the proper adjustments to operational and financial reports; (4) that the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles; (5) that the Company lacked adequate internal and financial controls; and (6) that, as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.

On March 30, 2007 the Company conducted a secondary offering. In connection with the secondary offering, the Company filed a Registration Statement and Prospectus (collectively referred to as the "Registration Statement") with the SEC. As part of the secondary offering, Defendant Kenneth Tuchman registered as much as 5.75 million shares of his privately owned TeleTech common stock at $36.50 per share. Defendant Tuchman made nearly $210 million in the secondary offering. Following this, the Company continued to paint a picture of sound financial health and markets. However, on November 8, 2007, TeleTech shocked investors when it disclosed that it was reviewing its equity-based compensation practices and would likely have to restate previously issued financial statements, possibly going back to 1999. The Company concluded that financial statements for the periods 1999 through the second quarter of 2007 should not be relied upon. Upon the release of this news, shares of the Company's stock declined $2.18 per share, or 9.64 percent, to close on November 9, 2007 at $20.43 per share, on unusually heavy trading volume.

If you wish to discuss this action or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Johnson & Perkinson attorneys James F. Conway, III or Eben F. Duval toll free at 1-888-459-7855; via email at email@jpclasslaw.com; through our website at www.jpclasslaw.com; or by mail at Johnson & Perkinson, 1690 Williston Road, P.O. Box 2305, South Burlington, Vermont 05403. Attorneys at Johnson & Perkinson can help you decide if seeking appointment as a Lead Plaintiff is right for you. Your ability to share in any recovery is not affected by your decision to not seek appointment as a Lead Plaintiff.

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