NEW YORK, April 3, 2007 (PRIME NEWSWIRE) -- The Rosen Law Firm today announced that it has commenced an investigation into allegations that Inphonic, Inc. ("Inphonic" or the "Company") (Nasdaq: INPC) violated the federal securities laws by improperly recognizing revenues for the Company's fiscal year ended 2006 and the interim second, third and fourth quarters.
This morning the Company filed a Form 8-K with the SEC announcing that the Company's previously reported financial results for the quarterly periods ended June 30, 2006 and September 30, 2006 as well as for the quarter and year-ended December 31, 2006 should no longer be relied upon. In response to the Company's announcement, the Company's stock fell approximately $1.21 per share on very heavy volume.
The Rosen Law Firm is investigating whether the Company had improperly recognized revenues on certain cancelled consumer contracts in violation of the Company's own historical practices and Generally Accepted Accounting Principles. The firm is also investigating allegations concerning the Company's premature recognition of disputed carrier commissions as revenues, insofar as these commissions may have been uncollectible.
As a result of these allegations, the Rosen Law Firm is preparing a class action lawsuit on behalf of investors who purchased Inphonic stock during the period from August 2, 2006 through and including April 2, 2007.
You may access the website at http://www.rosenlegal.com to participate in the proposed class action.
If you purchased Inphonic securities and would like further information concerning your legal rights, please contact Laurence Rosen, Esq. or Phillip Kim, Esq. toll-free at 866-767-3653 or email lrosen@rosenlegal.com or pkim@rosenlegal.com or visit the website at www.rosenlegal.com
The Rosen Law Firm 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.