NEW YORK, Feb. 22, 2005 (PRIMEZONE) -- Goodkind Labaton Rudoff & Sucharow LLP filed a class action lawsuit on February 22, 2005 in the United States District Court for the Southern District of New York, on behalf of persons who purchased or otherwise acquired publicly traded securities of Sierra Wireless, Inc. ("Sierra Wireless" or the "Company") (Nasdaq:SWIR) between January 28, 2004 and January 26, 2005, inclusive, (the "Class Period"). The lawsuit was filed against Sierra Wireless, David B. Sutcliffe and David McLennan ("Defendants").
If you are a member of this class you can view a copy of the complaint and join this class action online at http://www.glrslaw.com/get/?case=SierraWireless
The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that the Company failed to disclose or misrepresented that the introduction of the Company's Voq-branded professional phone had placed it into direct competition with its biggest customer, palmOne, that the Company's allocation of capital behind Voq development would lead to a serious reduction in revenue as the Company reduced spending behind existing, successful product lines, and that the Company was facing intense competition in the PC card market due to its last generation technology.
On January 26, 2005, after the market closed, Sierra issued a press release announcing that its revenue for the fourth quarter of 2004 was well below guidance and that it expected a steep decline in revenue going forward. News of this shocked the market. On January 27, 2005, Sierra shares fell $5.53 per share, or 38% to close at $8.97 per share on very heavy volume.
Plaintiffs are represented by the law firm of Goodkind Labaton Rudoff & Sucharow LLP. Goodkind Labaton is one of the country's premier national law firms that represent individual and institutional investors in class action, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts. Goodkind Labaton, was recently ranked fourth in total recoveries in 2003 among the top 50 plaintiffs' law firms by Institutional Shareholder Services (ISS), the world's leading provider of proxy and corporate governance services. Notably, Goodkind Labaton recovered over half a billion dollars for its clients last two years.
If you bought Sierra Wireless securities between January 28, 2004 and January 26, 2005, inclusive, you may qualify to serve as Lead Plaintiff. Lead Plaintiff papers must be filed with the court no later than April 4, 2005. If you would like to consider serving as lead plaintiff or have any questions about the lawsuit, please contact one of our representatives or Christopher Keller, Esq. at 800-321-0476.
Information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca