HARTFORD, Conn., May 1, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard, 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 New York on behalf of all persons who purchased or otherwise acquired the common stock of Allot Communications Ltd. ("Allot" or the "Company") (Nasdaq:ALLT) pursuant and/or traceable to the Company's Registration Statement and Prospectus (the "Prospectus") for its initial public offering on November 15, 2006, (the "IPO").
The Complaint alleges that Allot and certain of its officers, directors and underwriters violated Federal Securities laws. It is alleged that the Prospectus issued in connection with the IPO was negligently prepared and, as a result, contained untrue statements of material fact and omitted to state other facts necessary to make the statements made therein not misleading. Specifically, the Complaint alleges that the Prospectus included representations that Allot would achieve its goal in becoming the leader in its industry through its ability to market and sell its products to end-customers through its channel partners. In fact, the Prospectus failed to disclose that Allot was experiencing declining sales in its indirect distribution channels, such as enterprise, education and smaller ISP customers, in North America.
On April 2, 2007, Allot announced that revenues and earnings for the first quarter of 2007 and the 2007 fiscal year would be lower than its previous guidance. Allot attributed the lower guidance to "weakness in sales from some of the Company's distributors, principally in the Americas, which are focused on sales to enterprise, education, and smaller ISPs." On this news, Allot stock fell from $9.15 per share to $7.11 per share -- approximately 40% below the IPO price.
If you are a member of the class, you may, no later than July 2, 2007, 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 Izard, P.C. 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 Izard, P.C. toll-free at (800) 797-5499, or by e-mail at firm@snlaw.net, or visit our website: www.snilaw.com.