NEW YORK, Jan. 23, 2013 (GLOBE NEWSWIRE) -- Gainey & McKenna announces that a class action lawsuit has been filed in the United States District Court for the Southern District of New York on behalf of investors who purchased or acquired magicJack VocalTec Ltd., ("Company") (Nasdaq:CALL) securities between February 28, 2012 through January 8, 2013, inclusive (the "Class Period"), alleging violations of the Securities Act of 1934 against the Company, certain of its officers and directors (the "Complaint").
The Complaint alleges that Defendants failed to disclose that the Company: (i) overstated revenue, earnings and cash flow in its SEC filings; (ii) overstated its cash balance by investing its shareholder cash in highly aggressive and unconventional securities; (iii) overstated its earnings by inconsistently treating its allowance for doubtful accounts and billing adjustments; (iv) improperly altered the estimated life of its assets, causing a decrease in its depreciation expense; and (v) wrote down finished products in order to hide weakening sales momentum. As a result of the above, the Company's financial statements were materially false and misleading during the Class Period.
If you wish to serve as lead plaintiff, you must move the Court no later than March 19, 2013. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to join the litigation, or to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. of Gainey & McKenna at (212) 983-1300, or via e-mail at tjmckenna@gaineyandmckenna.com.
While Gainey & McKenna did not file the Complaint in this matter, the firm, with offices in New York and New Jersey, regularly prosecutes cases on behalf of shareholders in state and federal courts throughout the United States.