NEW YORK, Aug. 22, 2008 (GLOBE NEWSWIRE) -- Pomerantz Haudek Block Grossman & Gross LLP ("Pomerantz Firm") (www.pomerantzlaw.com) reminds investors of MRV Communications Inc. ("MRV" or the "Company") (Nasdaq:MRVC) that September 8 is the deadline to request that the Court appoint you as lead plaintiff for the class in the pending class action. The Pomerantz Firm filed a class action lawsuit against MRV and certain officers of the company in the United States District Court, Central District of California. The complaint alleges violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and was filed on behalf of purchasers of the common stock of the Company between July 24, 2003 and June 5, 2008 (the "Class Period").
MRV Communications is a Delaware corporation which maintains its principal executive office in Chatsworth, California. The company supplies communications equipment and services to carriers, governments and enterprise customers worldwide. The complaint alleges that unbeknownst to investors and contrary to its public representations, MRV issued stock options that were deliberately backdated in order to provide improper windfalls to the individual defendants. Moreover, defendants compounded the fraud by improperly accounting for the backdated options, thereby inflating reported results. Finally, the Company belatedly admitted that such misconduct had taken place.
The complaint specifically alleges that: (1) the Company backdated the actual grants of its stock options grants and improperly recognized stock-based compensation expenses related to its stock options grants; (2) the Company failed to disclose that the stock option grants had not been accounted for in accordance with Generally Accepted Accounting Principles ("GAAP"); (3) the Company materially understated tax expenses, since MRV had improperly deducted such expenses on its tax returns, thereby reducing the amount of taxes to the extent owed; and (4) the Company failed to accurately report its financial statements and will now have to restate its historical financial statements for the period between 2002 and 2008.
Lead plaintiffs must meet certain legal requirements. Shareholders outside the United States may join the action. If you wish to review a copy of the Complaint, to discuss this action, or have any questions, please contact Teresa L. Webb (tlwebb@pomlaw.com) of the Pomerantz Firm at 888.476.6529 (or 888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz Firm, which has offices in New York, Chicago, Washington, D.C., Columbus, Ohio and the San Francisco Bay area, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.
More information on this and other class actions can be found on the Class Action Newsline at www.globenewswire.com/ca/