Insight hit by legal action

Shareholders slap suit on reseller following Q2 results

Online reseller Insight has been informed that a shareholder class action lawsuit has been filed against it a week after it posted what it called "disappointing" second-quarter results.

The suit alleges that "the company and certain officers and directors issued materially misleading statements to the market" between 25 April and 17 July of this year regarding the company's expected results of operations for the second fiscal quarter ended 30 June.

The firm, which turned over $737m compared with $505m in the same period last year, issued a statement on its website claiming it will "respond appropriately after it receives and reviews the complaint".

Filed in the United States District Court, District of Arizona, the lawsuit has not yet been officially served to Insight.

Timothy Crown, chief executive of Insight, said: "We reject any implication that we intentionally or recklessly issued materially false or misleading forecasts about our second-quarter earnings."