Murray, Frank & Sailer LLP is investigating a class action lawsuit on behalf of all securities purchasers of World Information Technology Inc. (OTC: WLRT.PK) ("World Information" or the "Company") from January 3, 2003 and March 16, 2004, inclusive (the "Class Period").
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Our investigation has uncovered that the Company, its officers, directors, and outside auditors may have violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. World Information purported to be a leading "online, member-created, Internet community." Throughout the class period, the Company reported artificially inflated sales, accounts receivable and net income. Despite these violations, the Company's outside auditor, Beckstead & Watts, LLP ("B&W"), certified the Company's 2002 financial statements.
In September 2003, B&W wrote to CEO Gary D. Morgan, questioning the validity of the Company's accounts receivable and noting problems with the Company's internal financial controls, but did not withdraw its audit report. In January 2004, B&W resigned as the Company's auditor, followed by CFO Steven D. Fellows who resigned in February 2004. On March 16, 2004, the Company announced that the Securities and Exchange Commission had temporarily suspended trading of the Company's securities due to the inaccuracy and incompleteness of the Company's financial statements.
If you would like information, please contact Eric J. Belfi at 1-800-497-8076 or at [email protected].