NEW YORK, Dec. 31, 2004 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit on behalf of purchasers of the securities of UTStarcom, Inc. ("UTStarcom" or the "Company") (Nasdaq:UTSI) between April 16, 2003 and September 20, 2004, inclusive (the "Class Period").
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.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired UTStarcom securities on any exchange between April 16, 2003 and September 20, 2004, and sustained damages, you may, no later than January 14, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Aaron D. Patton of Murray, Frank & Sailer LLP.