NEW YORK, March 23, 2004 (PRIMEZONE) -- According to Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com), which 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 investors who purchased the securities of Sonus during the period between April 9, 2003 and February 11, 2004, inclusive (the "Class Period"), investors have until Monday, April 12, 2004 to seek appointment by the Court as one of the lead plaintiffs in this action.
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 Monday, 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.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca