LOS ANGELES, Jan. 23, 2003 (PRIMEZONE) -- Glancy & Binkow LLP -- a law firm representing shareholders of ClearOne Communications, Inc. -- announces a March 18, 2003, deadline to move to be a lead plaintiff in the shareholder lawsuit. All persons and institutions who purchased securities of ClearOne Communications, Inc. ("ClearOne" or the "Company") (Nasdaq:CLRO) between January 1, 2001, and January 15, 2003, inclusive (the "Class Period"), may move the Court not later than March 18, 2003, to serve as lead plaintiff, however, you must meet certain legal requirements.
If you wish to receive a copy of the Complaint, or have any questions concerning your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy & Binkow LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9161, Toll Free at (888) 773-9224, or e-mail to info@glancylaw.com.
The Complaint charges ClearOne and certain of its executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements concerning ClearOne's revenue and earnings caused ClearOne's stock price to become artificially inflated, inflicting damages on investors. The Complaint alleges that, in order to inflate the price of ClearOne's stock, defendants caused the Company to falsely report its financial results during the Class Period through improper revenue recognition practices, including recognizing revenue for shipments to distributors even though the distributors had the right to return or exchange unsold goods. On January 15, 2003, the last day of the Class Period, the Securities and Exchange Commission filed a federal lawsuit alleging that defendants violated numerous federal securities laws, primarily through a program of "channel stuffing" -- shipping large amounts of inventory to the company's distributors with the understanding that the distributors did not have to pay for these products until the distributors resold the products, and that in some instances the distributors were given the right to return or exchange products the distributors were unable to sell.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy & Binkow LLP, a law firm with significant experience in prosecuting shareholder lawsuits, and substantial expertise in actions involving corporate fraud.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.