NEW YORK, June 10, 2006 (PRIMEZONE) -- The Rosen Law Firm (http://www.rosenlegal.com) reminds investors that they have until June 16, 2006 to seek appointment by the Court as Lead Plaintiff in the class action lawsuit filed by the Rosen Law Firm on behalf of purchasers of Pixelplus Corp., Ltd. (the "Company" or "Pixelplus") (Nasdaq:PXPL) American Depository Shares during the period between December 21, 2005 through April 11, 2006, including purchasers in the Company's Initial Public Offering.
While many law firms have announced class action lawsuits against Pixelplus, not all of the firms have actually filed a class action against Pixelplus. The Rosen Law Firm filed the first class action against the Company.
You can join the class action online at http://www.rosenlegal.com or call toll-free at (866) 767-3653 or via email Phillip Kim, Esq. pkim@rosenlegal.com or Laurence Rosen, Esq. lrosen@rosenlegal.com.
If you wish to serve as lead plaintiff, you must move the Court no later than June 16, 2006. If you wish to join the litigation or to discuss your rights or interests regarding this class action, please contact Laurence Rosen, Esq. or Phillip Kim, Esq. of The Rosen Law Firm toll free at (866) 767-3653 or via e-mail at lrosen@rosenlegal.com or pkim@rosenlegal.com . No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. You may also remain an absent class member.
The Complaint charges that defendants violated the Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Sections 11 and 15 of the Securities Act of 1933 by issuing materially false and misleading financial information. The Complaint alleges that during the Class Period, the Company reported materially false and misleading revenues for each reporting period in 2005. In particular, the Complaint alleges that the Company violated Generally Accepted Accounting Principles and the Federal Securities Laws, by failing to recognize sales to one of its affiliates, PTI, on a consolidated basis and recognizing sales that were uncollectible, which resulted in the Company overstating its revenues for 2005.
On April 11, 2006, the Company shocked the market when it announced, among other things, that its financial statements for 2005 should no longer be relied upon because the Company improperly recognized sales to PTI because the Company failed to consolidate PTI's results and accounted for sales that had uncertain collectibility. The Company admitted that it controls PTI as it has the ability to elect two-thirds of PTI's Board. As a result, the Company announced that revenues would be reduced by approximately $3.6 million and $2.5 million, for the fourth quarter of 2005 and fiscal year 2005, respectively. Following these adverse disclosures, the Company's stock price dropped nearly 37.2%.
The Rosen Law Firm (http://www.rosenlegal.com) has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud. The Rosen Law Firm represents investors throughout the nation, concentrating its practice in securities class actions.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca