LOS ANGELES, Nov. 22, 2004 (PRIMEZONE) -- Notice is hereby given that Glancy Binkow & Goldberg LLP commenced a Class Action lawsuit in United States District Court, Case No. 04-541-S-EJL, on behalf of a class (the "Class") consisting of all persons who purchased or otherwise acquired securities of UTStarcom, Inc. ("UTStarcom" or the "Company") (Nasdaq:UTSI) between April 16, 2003 and September 20, 2004, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges UTStarcom and certain of the Company's officers and directors with violations of federal securities laws. Plaintiff claims that defendants' omissions and material misrepresentations concerning UTStarcom's financial performance artificially inflated the Company's stock price, inflicting damages on investors. UTStarcom designs, manufactures and sells telecommunications equipment and products, and provides services associated with their operation. The Complaint alleges that defendants misrepresented material adverse facts during the Class Period, including, but not limited to: (a) significant problems with the Company's internal controls; (b) problems related to the Company's revenue recognition polices and procedures; and (c) supply chain problems that delayed recognition of certain revenues. On September 16, 2004, UTStarcom filed its second-quarter 2004 financial results with the Securities and Exchange Commission stating, among other things, that a Company-initiated review of a $290 million contract with Japan Telecom Co., Ltd. "led management to conclude that certain significant control deficiencies exist related to the review and evaluation of criteria related to revenue recognition. ..."
Four days later, on September 20, 2004, UTStarcom announced that the Company was revising its financial guidance downward for third-quarter and full-year 2004 and, moreover, would defer recognition of the entire $290-million Japan Telecom contract, rather than recognize revenue of $220 million in the second half of 2004.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than January 14, 2005, 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 with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.