NEW YORK, April 25, 2013 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that it filed a class action lawsuit in the U.S. District Court for the Northern District of California on behalf of purchasers of VeriFone Systems, Inc. securities ("VeriFone" or the "Company") (NYSE:PAY) during the class period December 14, 2011 through February 20, 2013, inclusive (the "Class Period"). The class action seeks to recover damages suffered by investors from the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws.
If you purchased VeriFone securities between December 14, 2011 and February 20, 2013, you may, no later than May 6, 2013, request that the Court appoint you lead plaintiff of the proposed class. Lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. 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.
If you purchased VeriFone securities and are interested in learning more about the lawsuit, please contact George Pressly, Esq. at 1 (800) 631-6234 or email George at AskGeorge@morgansecuritieslaw.com.
The Complaint alleges that Defendants issued a series of materially false and misleading statements regarding the Company's revenues and operations, by failing to disclose that: (i) the Company failed to move to a more subscriptions-based service model; (ii) past acquisitions masked the Company's sharply declining revenue base; (iii) the Company inappropriately recognized revenues in periods when such revenues should have been deferred; (iv) the Company lacked adequate internal and financial controls; and (v) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On February 20, 2013, VeriFone announced its preliminary financial results for the fiscal quarter ended January 31, 2013 to be between $0.47 to $0.57 per share on revenue of $424 million. This range fell well below analysts' profit forecast of $0.73 per share on revenue of $492 million. The Company also announced a new revenue recognition policy which prevented it from recognizing some revenues in that quarter. On this news, shareholders hammered VeriFone's share price, causing a plunge of $13.65 on extremely high volume to close at $18.24 per share on February 21, 2013.
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