NEW YORK, April 20, 2006 (PRIMEZONE) -- Roy Jacobs & Associates announces that it has commenced a class action lawsuit in the United States District Court for the Eastern District of New York on behalf of purchasers of the common stock of Comverse Technology, Inc. ("Comverse" or the "Company") (Nasdaq:CMVT) from April 30, 2001 through April 16, 2006 (the "Class Period"). Defendants include Comverse and certain of its top officers and directors.
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The Complaint alleges that defendants violated the federal securities laws by issuing false and incomplete financial information. Specifically, the Complaint alleges that defendants made misstatements and omitted information regarding the true timing of stock option grants made to key executives. This manipulation of the grant dates permitted the individual defendants to enrich themselves, while artificially inflating net income, operating income and retained earnings. Had the timing not been manipulated, and properly accounted for, these financial measures would have been materially lower.
The fraud began to be revealed on March 14, 2006 when Comverse shocked the market by announcing "the creation of a special committee of its Board of Directors composed of outside directors to review matters relating to the company's stock option grants, including, but not limited to, the accuracy of the stated dates of option grants and whether all proper corporate procedures were followed." The Company also announced that financial restatements might be required. Then, on April 17, 2006 Comverse revealed that it would restate its financial statements for the first three quarters of fiscal 2006, for the 2001-05 fiscal years, and possibly previous periods as well. The adjustments are expected to be material. As a result of these announcements, Comverse stock dropped from $29.15 on March 13, 2006 to $23.31 on April 17, 2006, a decline of over 20 per cent.
If you purchased Comverse stock during the Class Period, you may qualify to serve as Lead Plaintiff on behalf of the Class, which consists of all persons and entities who purchased Comverse stock from April 30, 2001 through April 16, 2006. You are not required to have sold your Comverse stock in order to claim damages, or to serve in this role. This case will be prosecuted on a contingent fee basis so there is no charge to you. All motions for appointment as Lead Plaintiff must be filed with the Court by June 19, 2006.
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More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.