NEW YORK, Feb. 10, 2003 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the District of Utah, on behalf of all purchasers of ClearOne Communications, Inc. ("ClearOne" or the "Company") (Nasdaq:CLRO) securities between January 4, 2001 and January 14, 2003, inclusive (the "Class Period"). A copy of the complaint filed in this action will be available on the firm's website at www.faruqilaw.com.
The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading press releases concerning ClearOne's financial results and business prospects. Specifically, the complaint alleges that ClearOne, through the use of improper revenue recognition practices, inflated revenues, net income and accounts receivables during the Class Period. Among other practices, defendants improperly recognized revenues from products which distributors had the right to return or exchange. As a result, the price of the Company's securities were artificially inflated throughout the Class Period, allowing defendants to close a $25.5 million private placement of common stock on December 11, 2001. On January 15, 2003, however, defendants revealed that the Securities and Exchange Commission had filed a complaint against them for the filing of false financial statements due to improper revenue recognition. As a result of the revelation, the Company's shares plummeted below $1.50, more than 90% lower than its Class Period high.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired ClearOne securities between January 16, 2001 and January 15, 2003, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the "Join Lawsuit" section of our website at www.faruqilaw.com.
If you purchased ClearOne securities during the Class Period, you may, not later than March 17, 2003, move the court to serve as lead plaintiff of the class. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
ERIC CRUSIUS, ESQ. ANTHONY VOZZOLO, ESQ. FARUQI & FARUQI, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 e-mail Ecrusius@faruqilaw.com Avozzolo@faruqilaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca