LOS ANGELES, March 21, 2005 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of Sierra Wireless, Inc. ("Sierra Wireless" or the "Company")(Nasdaq:SWIR) between January 28, 2004 and January 26, 2005, 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 Sierra Wireless and certain of the Company's executive officers with violations of federal securities laws. Plaintiff claims defendants' omissions and material misrepresentations during the Class Period artificially inflated the Company's stock price, inflicting damages on investors. Sierra Wireless develops and markets a range of products, including mobile phones and wireless data modems for portable computers. The Complaint alleges that defendants knowingly or recklessly misrepresented and failed to disclose the following material adverse facts: (a) Sierra Wireless' strategy to correct a technology deficiency relative to its competitors by introducing the Voq Smartphone was flawed, and its business model was not working; (b) the Company was facing increasing competition, intensified by its failure to enter the WCDMA market; (c) the Company's recent venture into the Smartphone market with the introduction of its new Voq line was a serious misstep--it did little to add revenue and further seriously harmed Sierra Wireless' relationship with palmOne, a prime customer--as the Voq Smartphone would compete with palmOne's Treo, the product for which Sierra Wireless was a supplier; (d) the Company's dependence on revenue from palmOne in its OEM business--selling embedded modules that allow other device manufacturers to add wireless connectivity to their products--was substantially greater than had been reported; and (e) Sierra Wireless customers were materially over-inventoried, which would lead to greatly diminished orders and sales in future quarters.
On January 26, 2005, after the market closed, Sierra Wireless announced its fourth-quarter 2004 financial results and first-quarter 2005 financial guidance. The Company announced revenue for fourth-quarter 2004 well below previous guidance, and further announced an expected steep decline in revenue going forward. This news shocked the market, sending Sierra Wireless shares down more than 38 percent the next day, January 27, 2005, to close at $8.97 per share on unusually heavy trading volume.
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 April 4, 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.