NEW YORK, July 20, 2009 (GLOBE NEWSWIRE) -- The Brualdi Law Firm, P.C. announces that a lawsuit has been commenced in the United States District Court for the Eastern District of New York on behalf of purchasers of Comtech Telecommunications Corp. ("Comtech") (Nasdaq:CMTL) common stock during the period between September 17, 2008 and March 9, 2009 (the "Class Period") for violations of the 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 Comtech common stock during the Class Period, and wish to move the court for appointment of lead plaintiff, you must do so by September 14, 2009. 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 issued materially false and misleading statements regarding the Company's business prospects. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts: (i) that the Company was experiencing negative trends in its commercial satellite earth station and encoder bookings, as well as commercial RF Amplifier bookings; (ii) that the Company's sales from its Mobile Data Communications division were weakening outside of its one order with the U.S. Army's Movement Tracking System ("MTS"); (iii) that the Company was experiencing difficulty integrating the Radyne acquisition and was not generating the synergies expected from the acquisition; (iv) that the Company's costs were rising in excess of internal forecasts reducing profit margins; and (v) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its prospects, and its revenue and earnings projections.
Then, on March 9, 2009, Comtech issued a press release announcing its financial results for the fiscal second quarter of 2009, the period ended January 31, 2009. In response to the Company's drastic reduction in its revenue and earnings guidance for 2009, the price of Comtech common stock fell $12.97 per share, or approximately 37%, to close at $22.48 per share, on extremely heavy trading volume.