IFIN Investors Financial Services (MM)

Insiders Reap Almost $15 million Dollars COLCHESTER, Conn., Aug. 4 /PRNewswire/ -- Scott + Scott, LLC (http://www.scott-scott.com/), a law firm based in Connecticut with offices in Chagrin Falls, Ohio, and San Diego, California, filed a class action today in the United States District Court for the District of Massachusetts on behalf of the purchasers of Investors Financial Services Corp. (NASDAQ:IFIN) securities during the Class Period between October 15, 2003, through July 15, 2005 inclusive (the "Class"). Any shareholder who desires to act as lead plaintiff must move the Court no later than 60 days from today. If you would like information about Scott + Scott's complaint and a copy of it -- or would like to discuss this action with an attorney, please contact attorney Neil Rothstein at (800/332-2259 or cell 619/251-0887). Attorney Amy K. Saba can also be reached at (800/332-2259, ext 26). Any member of the purported Class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Contacting Scott + Scott does not automatically make you a potential lead plaintiff. If you choose or desire to undertake this position, an attorney will discuss it with you personally so you are aware of your duties should you choose to accept this position. You will, however, continue to receive the same treatment and benefits that are extended to all class members, like the return of a phone call, the benefit of participating in decision making and being kept informed on a regular basis. Investors Financial Services Corp. ("IFIN") operates as a bank holding company for Investors Bank & Trust Company that provides asset managers with services including global custody, multi-currency accounting and mutual fund administration in the United States. The Complaint alleges that Defendants caused IFIN shares to trade at artificially inflated levels through the issuance of false and misleading financial statements and guidance. The Company's statements served to convince investors that the Company's financial statements were accurate, including results for revenues, growth and interest income, and the Company had shrewdly built into its models and assumptions the impact of continued interest rate compression and flattening of the US interest rate yield curve. In October 2004, the Company surprised the market when they finally revealed the need to restate financial results over a three-year period. On October 21, 2004, the price of IFIN stock plummeted, from its previous close of $43.70 to $36.50, on volume of over 11 million shares. Later, the Company revealed that during the period from 2001 to 2004, Investors had overstated net interest income by as much as $6.2 million. On July 14, 2005, IFIN dropped 15% after the financial back-office company slashed earnings guidance, citing interest rate pressure. Once again, the Company announced an unprecedented "reset" of their 2005 quarterly and 2005 yearly guidance. Defendants did this, allegedly, to bring their numbers in line with the "new" realities of market-driven rates and rate spreads. The Complaint alleges further that IFIN's assertions that an interest rate event peculiar to the second quarter served as the purported "trigger" for the Company's changed circumstances. This was false. In fact, the Complaint alleges, the change in the Company's fortunes was a direct result of the dramatic flattening of the yield curve and contraction of rate spreads. The Company cited a flatter-than-expected yield curve; narrower-than-expected reinvestment spreads; weaker-than-expected market-sensitive revenues, which included fees, linked to both the equity and foreign currency markets; and continued investments in headcount and technology to support new and existing clients. On July 15, 2005, the price of IFIN shares plummeted from its previous close of $41.52 to $34.05 for a loss 17.9% percent of their value on unprecedented volume of over 22 million shares. The Class Period high was $53.44; it now trades under $35 per share. Scott + Scott, LLC litigates cases throughout the nation on behalf of citizens of every continent. The firm dedicates itself to client communication and satisfaction and is currently litigating major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities worldwide. Please visit the Scott + Scott website to learn more about the firm, its practice and other cases. DATASOURCE: Scott + Scott, LLC CONTACT: Neil Rothstein, 1-800-332-2259 or cell +1-619-251-0887, , or Amy K. Saba, 1-800-332-2259, ext 26, , both of Scott + Scott, LLC Web Site: http://www.scott-scott.com/

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