Law Offices of Todd M. Garber Announces Class Action Lawsuit Against VeriFone Systems, Inc.
The Law Offices of Todd M. Garber announces that a class action lawsuit
has been filed in the United States District Court for the Northern
District of California on behalf of a class (the “Class”) comprising all
purchasers of the common stock of VeriFone Systems, Inc. (“VeriFone” or
the “Company”) (NYSE:PAY) between December 14, 2011 and February 19,
2013, inclusive (the “Class Period”). VeriFone designs, markets and
services electronic payment solutions worldwide.
The Complaint alleges that throughout the Class Period defendants made
false and/or misleading statements or failed to disclose that: (a) the
Company failed to execute its plan to move to a more subscriptions-based
service model; (b) past acquisitions masked what was happening at the
Company; (c) VeriFone’s accounting recognition was overly aggressive;
(d) VeriFone lacked adequate internal and financial controls; and (e) as
a result, the Company’s financial statements were materially false and
misleading at all relevant times.
On February 20, 2013 VeriFone announced that it expected first quarter
adjusted earnings to be between $0.47 and $0.57 per share on revenue of
$424 million – well below analysts’ profit forecasts of $0.73 per share
on revenue of $492 million. The Company also announced a new revenue
recognition policy which prevented it from recognizing that quarter’s
revenues from distributors in the Middle East and Africa.
If you are a member of the above-described Class, you may move the Court
no later than May 6, 2013 to serve as lead plaintiff; however, you must
meet certain legal requirements. To be a member of the Class you need
not take any action at this time, or you may retain counsel of your
choice. If you have information or would like to learn more about these
claims, or if you have any questions concerning this announcement or
your rights or interests with respect to these matters, please contact
Todd M. Garber, Esquire, of the Law Offices of Todd M. Garber, by
telephone at 213-700-7262 or by email to info@toddgarberlaw.com.
This press release may be considered Attorney Advertising in some
jurisdictions under the applicable law and ethical rules.
