Cohen Milstein Sellers & Toll PLLC Files Class Action Lawsuit Against Integral Systems, Inc.

The law firm Cohen Milstein Sellers & Toll PLLC ("Cohen Milstein”) has filed a lawsuit in the United States District Court for the District of Maryland on behalf of purchasers of Integral Systems, Inc. ("Integral Systems” or the "Company”) (Nasdaq GS:ISYS) common stock during the period between April 28, 2008 and December 10, 2008, inclusive (the "Class Period”).

The complaint charges Integral Systems and certain of its officers and directors (collectively "Defendants”) with violations of the Securities Exchange Act of 1934 (the "Exchange Act”). Integral Systems builds satellite ground systems and equipment for command and control, integration and test, data processing, and simulation. The complaint alleges that, during the Class Period, Defendants issued numerous materially false and misleading statements which caused Integral Systems’ securities to trade at artificially inflated prices.

More specifically, the complaint alleges that Defendants’ public statements were false and misleading and/or failed to disclose or indicate that: (1) the Company improperly recognized revenue; (2) as a result, the Company misstated its financial results during the Class Period; (3) the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP”); (4) the Company lacked adequate internal and financial controls; and (5) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.

According to the complaint, on December 11, 2008, Integral Systems shocked investors when it revealed that its unaudited financial statements for the interim periods ended December 31, 2007, March 30, 2008 and June 30, 2008 should no longer be relied upon due to an error in the accounting treatment for certain transactions with respect to the timing of the recognition of revenue between periods. Furthermore, the complaint alleges that the Company further disclosed that, as a result, the Company would restate its previously filed financial statements for those interim quarterly periods in fiscal year 2008. The Company estimated that the net impact of the adjustments for the first three quarters of 2008 would result in a decrease of approximately $10 million in revenues, a decrease of approximately $3 million in gross profit, a decrease of approximately $4 million in operating income, and a decrease of approximately $0.13 in earnings per share. Following these disclosures, shares of Integral Systems declined $6.38 per share, or more than 28%, to close on December 11, 2008 at $15.92 per share, on unusually heavy volume.

If you are a member of the class, you may, no later than February 16, 2009, request that the Court appoint you as Lead Plaintiff of the class. Any member of the purported class may move the Court to serve as Lead Plaintiff through counsel of their choice or may choose to remain an absent class member.

Cohen Milstein Sellers & Toll PLLC has significant experience in prosecuting investor class actions and actions involving securities fraud. The firm has offices in Washington, D.C., New York, Philadelphia, Chicago, and London, and is active in major litigation pending in federal and state courts throughout the nation, including actions within this District. You may visit the firm’s website at www.cohenmilstein.com.

The firm’s reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm to lead positions in complex multi-district or consolidated litigation. Cohen Milstein Sellers & Toll PLLC has taken a lead role in numerous important cases on behalf of defrauded investors, and has been responsible for a number of outstanding recoveries which, in the aggregate, total in the billions of dollars.

If you have any questions about this notice or the action, or with regard to your rights, please contact either of the following: