NEW YORK, March 18, 2005 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit on behalf of shareholders who purchased or otherwise acquired the 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 complaint charges Sierra Wireless and certain of its officers and directors with violations of the Securities Exchange Act of 1934. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the introduction of Sierra Wireless' Voq-branded professional phones was a complete and utter disaster because it harmed the Company's relationship with its biggest customer, palmOne and ultimately lead to palmOne's decision to stop purchasing embedded modules from Sierra Wireless; (2) that Sierra Wireless' decision to invest in Voq development at the expense of a UMTS card lead to a serious reduction in revenues; (3) that Sierra Wireless' dependence on palmOne revenue was significantly greater than had been reported; (4) that Sierra Wireless was facing increasing competition in the PC Card market due to its out-dated technology; and (5) that due to the Company's out-dated PC Cards, many of Sierra's major customers had excess inventory of its products.
On January 26, 2005, after the market closed for regular trading, Sierra issued a press release announcing its financial results for the fourth quarter of 2004 and provided guidance for the first quarter of 2005. Specifically, Sierra announced that its revenue for the fourth quarter of 2004 was well below the previous guidance that it had given to investors and further announced that it expected a steep decline in its revenue going forward. News of this shocked the market. Shares of Sierra Wireless, on January 27, 2005, fell $5.53 per share, or 38.14 percent, to close at $8.97 per share on unusually heavy trading volume.
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 Sierra Wireless securities on any world exchange between January 28, 2004 and January 26, 2005, and sustained damages, you may, no later than April 4, 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.