BOSTON, March 31, 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 (www.bermanesq.com) filed the complaint in the U.S. District Court for the District of Massachusetts on behalf of all investors who bought Sonus Networks common stock from May 12, 2003, through and including March 26, 2004 (the "Class Period"). The action extends the Class Period alleged in a complaint filed against the company on February 13, 2004.
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 http://www.bermanesq.com/pdf/SonusNetworks-Cplt.pdf.
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, causing the company's stock to trade at artificially high prices.
Specifically, the defendants are accused of improperly recognizing revenue and violating Generally Accepted Accounting Principles (GAAP) governing the timing of revenue recognition.
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.
Then, before the markets opened on March 29, 2004, Sonus Networks announced a delay in the filing of its amended annual report for fiscal year 2003, which the company stated could result in a delisting of its stock from NASDAQ. Sonus Networks further reported that it expects that it will also need to restate its financial results for fiscal year 2002 and announced that it is considering expanding its ongoing accounting review to include additional prior periods.
In response to this news, Sonus Networks stock fell an additional 14% from $4.56 on March 26, 2004 to close at $3.92 on March 29, 2004.
If you purchased Sonus Networks, Inc. common stock during the period of May 12, 2003, through and including March 26, 2004, you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
Nicole R. Starr, 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, or you may submit information online at http://www.bermanesq.com/Securities/Signup1.asp?caseid=497. Please note, you may also retain counsel of your choice and need not take any action at this time to be a class member.
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, Florida.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca