KO&L LLP Announces That It Has Filed A Class Action Lawsuit Against VeriFone Holdings, Inc.
KO&L LLP has filed a securities class action complaint against VeriFone Holdings, Inc. (“VeriFone” or the “Company”) (NYSE: PAY) and certain of its officers in the U.S. District Court for the Northern District of California (Civil Action No. 07-6238 MHP ) on behalf of investors who purchased the common stock of VeriFone between March 1, 2007 through November 30, 2007 (the “Class Period”). As described below, if you purchased VeriFone’s common stock during the Class Period, you have until February 4, 2008 to move to be appointed as a Lead Plaintiff.
The Complaint alleges that defendants violated the federal securities laws by publicly disseminating materially false and misleading financial results for VeriFone’s first three fiscal quarters of 2007. Specifically, the Complaint alleges that, with regard to these three quarters, Defendants: (1) materially overstated VeriFone’s earnings and inventory; (2) falsely represented that they were prepared in accordance with Generally Accepted Accounting Principles (“GAAP”); and (3) falsely represented that VeriFone had adequate internal financial and disclosure controls. During the same period, VeriFone’s Chairman and Chief Executive Officer, defendant Douglas G. Bergeron, sold approximately 1,028,822 VeriFone shares at artificially inflated prices for proceeds of approximately $41.5 million, and VeriFone’s Executive Vice President and Chief Financial Officer, defendant Barry Zwarenstein, sold 118,585 VeriFone shares at artificially inflated prices for proceeds of approximately $4.6 million.
On December 3, 2007, VeriFone announced that it was restating its financial statements for the first three fiscal quarters of 2007, and that its financial results for those three quarters could no longer be relied upon. In reaction to this news, VeriFone’s share price fell by 45% – or $22 per share – on exceptional trading volume.
If you purchased VeriFone common stock during the Class Period (March 1, 2007 through November 30, 2007), you may, no later than February 4, 2008, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Please Contact Us or call us at 202/261-3553 for a more thorough explanation of the Lead Plaintiff selection process and the claims that can be asserted against VeriFone.
