NEW YORK, Aug. 12, 2023 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential claims against DZS Inc. ("DZS" or the "Company") (NASDAQ: DZSI) and reminds investors of the August 14, 2023 deadline to seek the role of lead plaintiff in a federal securities class action that has been filed against the Company.
If you suffered losses exceeding $100,000 investing in DZS stock or options between March 10, 2023 and May 31, 2023and would like to discuss your legal rights, call Faruqi & Faruqi partner Josh Wilson directly at 877-247-4292 or 212-983-9330 (Ext. 1310). You may also click here for additional information: www.faruqilaw.com/DZSI.
There is no cost or obligation to you.
Faruqi & Faruqi is a leading minority and Woman-owned national securities law firm with offices in New York, Pennsylvania, California and Georgia.
According to the lawsuit, defendants throughout the Class Period made false and/or misleading statements and/or failed to disclose, among other things, that: (1) DZS' financial statements from March 31, 2023 to the present contained certain errors; (2) as a result, DZS would need to restate its previously filed quarterly financial statement for the period ending March 31, 2023; (3) the Company had ongoing undisclosed issues with its internal controls over financial reporting; and (4) as a result, Defendants' statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times. When the true details entered the market, the lawsuit claims that investors suffered damages.
On May 8, 2023, DZS announced its financial results for Q1 2023 that included Q1 revenue of $91 million, an 18% increase year-over-year and within the guidance range of $90 - $100 million.
But, on June 1, 2023, DZS announced that it would restate its financial results for its fiscal quarter ended Mar. 31, 2023. The company admitted that it improperly recognized approximately $15 million of revenue during the quarter. The company further revealed that "[t]he restatement relates to the timing of revenue recognition with respect to two customer projects" and "'[t]he most significant of the two revenue restatements is with a long-standing, highly valued customer.'" The improperly recognized revenue equates to an approximate 19% overstatement during Q1 2023, without which DZS would have fallen well short of the guidance range.
In addition, DZS withdrew its Q2 2023 guidance issued on May 8, 2023.
This news drove the price of DZS shares crashing lower on June 1, 2023.
The court-appointed lead plaintiff is the investor with the largest financial interest in the relief sought by the class who is adequate and typical of class members who directs and oversees the litigation on behalf of the putative class. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. Your ability to share in any recovery is not affected by the decision to serve as a lead plaintiff or not.
Faruqi & Faruqi, LLP also encourages anyone with information regarding DZS's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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SOURCE Faruqi & Faruqi, LLP
