HARTFORD, Conn., May 8, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of Columbia on behalf of all persons who purchased or otherwise acquired the publicly traded securities of Inphonic, Inc. ("Inphonic" or the "Company") (Nasdaq:INPC) between August 2, 2006 and May 3, 2007, inclusive, (the "Class Period").
The Complaint alleges that Inphonic and certain of its officers and directors violated Federal Securities laws by issuing a series of false and misleading statements concerning the Company's 2006 fiscal year financial results. The Complaint further alleges that during the Class Period, Inphonic: (i) incorrectly recorded revenues associated with uncollectible carrier commissions and bonuses; (ii) improperly recognized revenues for certain cancelled consumer contracts; (iii) incorrectly recorded certain accrued expenses; and, (iv) incorrectly recorded certain equipment expenses.
On April 3, 2007, Inphonic issued a Form 8-K indicating that the Company's financial statements for the quarterly periods ended June 30, September 30, and December 31, 2006 could no longer be relied upon due to errors in the Company's revenue recognition process. On this news, shares fell from $10.36 per share to $9.15 per share, a one-day decline of 11.5%. Then on May 4, 2007, the Company issued an additional Form 8-K, providing further clarification on its issues concerning revenue recognition, shares of Inphonic fell again, dropping from $8.54 per share to $7.90 per share, a one day decline of 7.5%.
If you are a member of the class, you may, no later than July 6, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard, P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard, P.C. toll-free at (800) 797-5499, or by e-mail at firm@snlaw.net, or visit our website: www.snilaw.com.