HARTFORD, Conn., June 14, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of California, on behalf of all persons who purchased or otherwise acquired the publicly traded securities of InfoSonics Corporation ("InfoSonics" or the "Company") (AMEX:IFO) between May 9, 2006 and June 9, 2006, inclusive, (the "Class Period").
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements. Specifically, Defendants had improperly accounted for warrants issued in connection with a January 2006 private placement. In addition, it is alleged that while in possession of material nonpublic information regarding an investigation into its accounting for warrants, Defendants sold large amounts of their personal holdings for proceeds exceeding $3 million.
Before the market opened on June 12, 2006, InfoSonics disclosed that it would need to restate its previously reported financial results, and that it would need to revise downward its first quarter net income from $1.738 million to $1.173 million as a result of the improper accounting treatment of the warrants. On this news, shares of InfoSonics fell to a close of $17.38 on June 12, down $6.84 from the previous close of $24.22.
If you are a member of the class, you may, no later than August 14, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail at sn06106@aol.com, or visit our website: www.snlaw.net.