BOULDER, Colo., Oct. 6, 2008 (GLOBE NEWSWIRE) -- Advertising Material -- The Shuman Law Firm today 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 those who purchased the common stock of Novatel Wireless Inc. ("Novatel" or the "Company") (Nasdaq:NVTL) between February 5, 2007 and August 19, 2008 (the "Class Period").
The Complaint charges that Novatel and certain of its officers and directors violated federal securities laws by issuing materially false statements. Specifically, defendants failed to disclose that Novatel 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 misrepresented the status of an internal accounting review by the Company's Audit Committee. On May 13, 2008, defendants represented that Novatel 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." 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.
If you are a member of the class, you may, no later than November 17, 2008, 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. 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 Kip B. Shuman, Esq. or Rusty Glenn, Esq. toll-free at (866) 974-8626 or email Mr. Shuman at Kip@shumanlawfirm.com or Mr. Glenn at rusty@shumanlawfirm.com.
The Shuman Law Firm represents investors throughout the nation, concentrating its practice in securities class actions and derivative litigation.
More information on this and other class actions can be found on the Class Action Newsline at www.globenewswire.com/ca
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