NEW YORK, May 5, 2006 (PRIMEZONE) -- Roy Jacobs & Associates announces that it will amend its class action lawsuit to include updated allegations, including that defendants are now facing a criminal investigation into the alleged wrongdoing by the United States Department of Justice, and that, in light of the expanding scandal, Defendant Kobi Alexander, who served as Chairman and Chief Executive Officer and defendant David Kreinberg who served as Chief Financial Officer of the Company, have resigned.
For further information you may call toll free, 1-888-884-4490, or contact counsel by e-mail by writing to classattorney@pipeline.com.
The class action complaint was previously filed 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") against Comverse and certain of its top officers and directors)
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. As a result of the recent revelations of the fraud, Comverse shares have dropped markedly in value and have not recovered.
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.
Our firm will answer all questions, and provide information, at no cost or obligation to you.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca