NEW YORK, Sept. 19, 2008 (GLOBE NEWSWIRE) -- The Brualdi Law Firm, P.C. announces that a lawsuit has been commenced in the United States District Court for the Southern District of California on behalf of purchasers of Novatel Wireless, Inc. ("Novatel" or "the Company") (Nasdaq:NVTL) securities during the period between February 5, 2007 and August 19, 2008 (the "Class Period") for violations of federal securities laws.
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. If you purchased Novatel common stock during the Class Period, and wish to move the court for appointment of lead plaintiff, you have 60 days from September 16, 2008 to do so. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You do not need to seek appointment as a lead plaintiff in order to share in any recovery.
To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Sue Lee at The Brualdi Law Firm, P.C. 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1187 or (212) 952-0602, by email to slee@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com.
The complaint alleges that during the Class Period, defendants misrepresented Novatel's financial performance. Specifically, defendants failed to disclose that the Company was recognizing revenue in violation of its own revenue cut-off procedures and Generally Accepted Accounting Principles, thus rendering the Company's publicly reported financial results materially false. The defendants also repeatedly misrepresented the status of an internal accounting review by the Company's Audit Committee. On May 13, 2008, defendants represented that the Company was unable to file its Form 10-Q with the SEC on time because of a review of a single customer contract which they represented was "substantially completed today." Over three months later, on August 19, 2008, defendants admitted that the review was still ongoing, that it involved at least six transactions representing $9.1 million in revenue, and that when the review was completed a decision would be made as to whether a restatement would be required. As a result of these disclosures, Novatel's stock price dropped from $8.40 to $6.29 the next day, a 25% decline.