Pomerantz Law Firm Has Filed a Class Action Against magicJack VocalTec Ltd.,
and Certain Officers -- CALL
NEW YORK, Jan. 18, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford
Dahlstrom & Gross LLP has filed a class action lawsuit against magicJack
VocalTec Ltd., ("magicJack" or the "Company") (Nasdaq:CALL) and certain of its
officers. The class action filed, in United States District Court, Southern
District of New York, and docketed under 13-CV-0448, is on behalf of a class
consisting of all persons or entities who purchased or otherwise acquired
securities of magicJack between February 28, 2012 and January 8, 2013, both
dates inclusive (the "Class Period"). This class action seeks to recover
damages against the Company and certain of its officers and directors as a
result of alleged violations of the federal securities laws pursuant to
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5
If you are a shareholder who purchased magicJack securities during the Class
Period, you have until March 19, 2013 to ask the Court to appoint you as Lead
Plaintiff for the class. A copy of the Complaint can be obtained at
www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at
firstname.lastname@example.org or 888.476.6529 (or 888.4-POMLAW), toll free, x237.
Those who inquire by e-mail are encouraged to include their mailing address
and telephone number.
magicJack provides voice-over-Internet-protocol telephone services. The
Company develops and markets computer software and hardware for making
telephone calls over the Internet.
Throughout the Class Period, Defendants made materially false and misleading
statements regarding the Company's business, operational and compliance
policies. Specifically, Defendants made false and/or misleading statements
and/or failed to disclose that: (i) the Company overstated revenue, earnings
and cash flow in its SEC filings; (ii) the Company overstated its cash balance
by investing its shareholder cash in highly aggressive and unconventional
securities; (iii) the Company overstated its earnings by inconsistently
treating its allowance for doubtful accounts and billing adjustments; (iv) the
Company improperly altered the estimated life of its assets, causing a
decrease in its depreciation expense; (v) while the Company claimed that it
was writing down its excess inventory of chips, it instead wrote down finished
products in order to hide weakening sales momentum; and (vi) as a result of
the above, the Company's financial statements were materially false and
misleading at all relevant times.
On January 9, 2013, Copperfield Research published a report revealing, among
other things, that the Company had been consistently overstating its revenue
and profitability. According to the report, "magicJack has presented its
retail investor base with earnings press release and financial tables that are
overstated and later altered based on the corresponding SEC filings."
On this news, magicJack stock declined $2.01 per share or more than 11%, to
close at $15.30 per share on January 9, 2013.
The Pomerantz Firm, with offices in New York, Chicago, and San Diego, is
acknowledged as one of the premier firms in the areas of corporate,
securities, and antitrust class litigation. Founded by the late Abraham L.
Pomerantz, known as the dean of the class action bar, the Pomerantz Firm
pioneered the field of securities class actions. Today, more than 70 years
later, the Pomerantz Firm continues in the tradition he established, fighting
for the rights of the victims of securities fraud, breaches of fiduciary duty,
and corporate misconduct. The Firm has recovered numerous multimillion-dollar
damages awards on behalf of class members. See www.pomerantzlaw.com.
CONTACT: Robert S. Willoughby
Pomerantz Grossman Hufford Dahlstrom & Gross LLP
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