SEATTLE, Dec. 11 /PRNewswire/ -- Hagens Berman Sobol Shapiro LLP ("Hagens Berman") (http://www.hbsslaw.com/pay.htm) announced that it has filed a securities fraud class-action on behalf of all persons who purchased common stock of VeriFone Holdings, Inc. ("VeriFone" or the "Company") (NYSE:PAY) between August 31, 2006 and December 3, 2007.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from December 6, 2007. If you wish to consider joining this action as lead plaintiff, discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Reed Kathrein of Hagens Berman at 510/725-3000 or via e-mail .
The lawsuit, filed in the United States District Court for the Northern District of California alleges that as a result of VeriFone's fraud during the Class Period, shares were purchased and sold at artificially inflated prices and is seeking to pursue remedies under the Securities Exchange Act of 1934 (the "Exchange Act"). You can view a copy of the complaint as filed or join this class action online at http://www.hbsslaw.com/pay.htm.
VeriFone is a Delaware corporation based in San Jose, CA. The company engages in the design, marketing and service of transaction automation systems that enable electronic payments between consumers, merchants, and financial institutions. Some of VeriFone's products include countertop electronic payment systems, a line of wireless system solutions, a family of products for petroleum companies and more. The complaint charges VeriFone's Chief Executive Officer, Douglas G. Bergeron, and the board of directors with withholding crucial information about the company, its operations, products and financial health from investors. False and misleading information was knowingly distributed in the company's public filings, press releases and other publications causing investors to purchase shares at artificially inflated prices.
Beginning August 31, 2006 a series of announcements were made from the company regarding the financial health of previous quarters and the remaining year. A press release and certified statements by the CEO were filed that contained knowingly misleading information about projected and received profits. Following the publication of the purported strong financial results company insiders immediately liquidated large amounts of their personal VeriFone stock. Similar statements with misleading financial results were reported for the first three quarters in 2007. Each time an announcement was made company insiders continued to dump large amounts of personal stock.
Finally on December 3, 2007 the company announced that financial statements for the past nine months were overstated and would have to be restated. The company overstated its profit by almost $30 million -- or 80 percent -- causing a toppling of company stock almost immediately. The company collapsed over 45 percent on a single trading day dropping from what once was a high of over $50 per share to $26.03 per share. During the class period company insiders stock sales total over $1.3 billion which was sold at knowingly artificially inflated prices.
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. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
Hagens Berman Sobol Shapiro, a law firm with offices in Seattle, San Francisco, Los Angeles, Boston, Chicago and Phoenix, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Hagens Berman Web site (http://www.hbsslaw.com/) has more information about the firm.
Contact:
Hagens Berman Sobol Shapiro LLP
Reed R. Kathrein
510-725-3000
http://www.hbsslaw.com/ DATASOURCE: Hagens Berman Sobol Shapiro LLP CONTACT: Reed R. Kathrein of Hagens Berman Sobol Shapiro LLP, +1-510-725-3000, Web site: http://www.hbsslaw.com/
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