BOSTON, Feb. 13, 2004 (PRIMEZONE) -- An investor sued Sonus Networks, Inc. (Nasdaq:SONS) today, claiming the telecommunications equipment provider and two top officers issued misleading financial results, Berman DeValerio Pease Tabacco Burt & Pucillo announced.
The class action was filed in the U.S. District Court for the District of Massachusetts. It seeks damages for violations of federal securities laws on behalf of all investors who bought Sonus Networks common stock from June 3, 2003, through and including February 11, 2004 (the Class Period).
Berman DeValerio has represented investors in class actions since 1982. To receive a copy of the complaint, you may contact the Court, call the firm at (800) 516-9926 or go to the firm's website at www.bermanesq.com.
The lawsuit claims that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder, including U.S. Securities and Exchange Commission (SEC) Rule 10b-5.
The complaint names as defendants the company; its chief executive officer, Hassan Ahmed; and its chief financial officer, Stephen J. Nill.
According to the complaint, the defendants issued numerous statements during the Class Period that either misrepresented or failed to properly disclose the true financial condition of the company. Specifically, the defendants are accused of improperly recognizing revenue and violating Generally Accepted Accounting Principles (GAAP) governing the timing of revenue recognition. The complaint contends that the defendants' misrepresentations resulted in the release of false and misleading financial results during the Class Period.
After the markets closed on February 11, 2004, Sonus Networks announced a year-end audit had found "certain issues, practices and actions of certain employees relating to both the timing of revenue recognized from certain customer transactions and to certain other financial statement accounts" that could affect the company's results for 2003 and prior periods. Prior to disclosing these adverse facts, Sonus Networks completed a $126 million public offering, and company insiders sold approximately $2 million of their personally held shares to the unsuspecting public.
Investors' reaction was swift and severe. The following day, on February 12, 2004, Sonus Networks' stock price dropped approximately 19% from the previous day's close.
If you purchased Sonus Networks, Inc. common stock during the period of June 3, 2003, through and including February 11, 2004, you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
Shannon L. Hopkins, Esq. Michael T. Matraia, Esq. One Liberty Square Boston, MA 02109 (800) 516-9926 law@bermanesq.com
If you wish to apply to be lead plaintiff in this action, a motion must be filed on your behalf with the court no later than April 12, 2004. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. You may also retain counsel of your choice. To be a member of the class, however, you need not take any action at this time.
Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations, and consumer fraud. The firm consists of 35 attorneys in Boston, San Francisco, and West Palm Beach, Fla.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca