NEW YORK, April 19, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against VeriFone Systems, Inc. ("VeriFone" or the "Company") (NYSE:PAY) and certain of its officers. The class action filed in United States District Court, Northern District of California, and docketed under C 13 1038, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of VeriFone between December 14, 2011 and February 19, 2013, both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased VeriFone securities during the Class Period, you have until May 6, 2013 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
VeriFone is a global provider of technology that enables electronic payment transactions and value-added services at the point of sale.
The Complaint alleges that throughout the Class Period, Defendants issued a series of materially false and misleading statements regarding the Company's revenues and operations, by failing to disclose that: (i) the Company did not properly execute its plan to move to a more subscriptions-based service model; (ii) past acquisitions had masked the Company's sharply declining revenue base; (iii) the Company was inappropriately recognizing revenues from distributors in periods where such revenues should have been deferred; (iv) the Company lacked adequate internal and financial controls; and (v) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On February 4, 2013, the Company announced the retirement of its Chief Financial Officer ("CFO"), as well as its Vice Chairman, Ellmore Waller. Defendant Robert Dykes ("Dykes") was named as the Company's new CFO. On this news, VeriFone stock declined $0.87 per share or nearly 2.5%, to close at $34.37 per share.
On February 20, 2013, the Company announced its preliminary financial results for the first fiscal quarter ended January 31, 2013. The Company announced that it expected first quarter adjusted earnings to be between $0.47 to $0.57 per share on revenue of $424 million, falling well below analysts' profit forecast of $0.73 per share on revenue of $492 million. The Company also announced a new revenue recognition policy which prevented it from recognizing revenues that quarter from distributors in the Middle East and Africa.
On this news, shareholders hammered VeriFone's share price, causing it to spiral $13.65 per share or nearly 43%, to close at $18.24 per share on February 21, 2013.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, 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. See www.pomerantzlaw.com.