NEW YORK, Feb. 26, 2004 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com) has filed a class action lawsuit against Sonus Networks, Inc. ("Sonus" or the "Company") (Nasdaq:SONS) and two of the Company's senior officers, on behalf of all persons or entities who purchased the securities of Sonus during the period between April 9, 2003 and February 11, 2004, inclusive (the "Class Period"). The case was filed in the United States District Court for the District of Massachusetts.
The complaint alleges that Sonus, a leading provider of voice infrastructure products, and the Company's President and Chief Financial Officer, violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing false and misleading financial results. As alleged in the Complaint, throughout the Class Period the Company's revenue and earnings results were artificially inflated through accounting chicanery in violation of Generally Accepted Accounting Principles ("GAAP"). It is alleged that the Company was improperly booking revenue from their sales. In particular, the Company intentionally recognized revenue too early on the sale of its telephone-network equipment.
On February 11, 2004, Sonus announced that the Company might have to restate results for 2003 and prior years because some sales might not have been recorded at the right time. The Company also announced a further delay in the release of their fourth quarter and year-end results. Prior to this disclosure, Sonus issued over $60 million of its stock to the public as a secondary offering, and certain Company insiders made over $2 million in insider stock sales. The following day, shares of Sonus closed at $5.39, a decline of $2.11 per share, or 28%, from its close of $7.50 on February 10, 2004.
If you purchased the securities of Sonus during the Class Period, you have until April 12, 2004 to ask the Court to appoint you as one of the lead plaintiffs for the Class. In order to serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 or (888) 4-POMLAW, toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz firm, which has offices in New York, Chicago and Washington, D.C., is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca