RADNOR, Pa., Dec. 10 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP: Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Northern District of California on behalf of all purchasers of securities of VeriFone Holdings, Inc. (NYSE:PAY) ("VeriFone" or the "Company") from September 1, 2006 through November 30, 2007, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at .
The Complaint charges VeriFone and certain of its officers and directors with violations of the Securities Exchange Act of 1934. VeriFone is a provider of technology that enables electronic payment transactions and value- added services at the point of sale. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company had materially overstated its inventory due to accounting errors; (2) that the Company had materially understated its cost of net revenues; (3) as such, the Company's gross margins were misstated; (4) that the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles; (5) that, as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times; (6) that the Company's integration of Lipman Electronic was not proceeding according to plan; (7) that the Company lacked adequate internal and financial controls; and (8) that, as a result of the foregoing, the Company's statements about its financial well- being and future business prospects were lacking in any reasonable basis when made.
On December 3, 2007, the Company shocked investors when it announced that its financial statements for the three months ended January 31, 2007, the three and six months ended April 30, 2007 and the three and nine months ended July 31, 2007 should no longer be relied upon. This was due to errors in accounting related to the valuation of in-transit inventory and allocation of manufacturing and distribution overhead to inventory. Each of these accounting errors affected VeriFone's reported costs of net revenues. A preliminary review revealed that these restatements would result in reductions to the Company's previously reported inventory levels of approximately $7.7 million, $16.5 million and $30.2 million as of January 31, 2007, April 30, 2007 and July 31, 2007, respectively. Additionally, the Company's previously reported pre-tax income would be reduced by approximately $8.9 million, $7.0 million and $13.8 million for the three month periods ended January 31, 2007, April 30, 2007 and July 31, 2007, respectively. On this news, the Company's shares fell $22.00 per share, or over 45.8 percent, to close on December 3, 2007 at $26.03 per share, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.
For more information about Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit http://www.sbtklaw.com/ If you are a member of the class described above, you may, not later than February 4, 2008, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. 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.
CONTACT: Schiffrin Barroway Topaz & Kessler, LLP
Darren J. Check, Esq. Richard A. Maniskas, Esq. 280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at DATASOURCE: Schiffrin Barroway Topaz & Kessler, LLP CONTACT: Darren J. Check, Esq., or Richard A. Maniskas, Esq., both of Schiffrin Barroway Topaz & Kessler, LLP, toll free, 1-888-299-7706, or +1-610-667-7706, Web site: http://www.sbtklaw.com/
|