Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has Been Filed Against magicJack VocalTec Ltd.

  Rigrodsky & Long, P.A. Announces A Securities Fraud Class Action Lawsuit Has
  Been Filed Against magicJack VocalTec Ltd.

Business Wire

WILMINGTON, Del. -- January 23, 2013

Rigrodsky & Long, P.A. announces that a complaint has been filed in the United
States District Court for the Southern District of New York on behalf of all
persons or entities that purchased the common stock of magicJack VocalTec Ltd.
(“magicJack” or the “Company”) (NASDAQ GM: CALL) between February 28, 2012 and
January 8, 2013, inclusive (the “Class Period”), alleging violations of the
Securities Exchange Act of 1934 against the Company and certain of its
officers (the “Complaint”).

If you purchased shares of magicJack during the Class Period, or purchased
shares prior to the Class Period and still hold magicJack, and wish to discuss
this action or have any questions concerning this notice or your rights or
interests, please contact Timothy J. MacFall, Esquire or Peter Allocco of
Rigrodsky & Long, P.A., 825 East Gate Boulevard, Suite 300, Garden City, NY at
(888) 969-4242, by e-mail to info@rigrodskylong.com, or at:
http://www.rigrodskylong.com/investigations/magicjack-vocaltec-ltd-call.

magicJack is a cloud communications leader that is the inventor of
voice-over-Internet-Protocol (“VoIP”), the softphone (“magicJack PC”) and the
award winning magicJack products. The Complaint alleges that throughout the
Class Period, defendants made materially false and misleading statements, and
omitted materially adverse facts, about the Company’s business, operations and
prospects. Specifically, the Complaint alleges that: (i) the Company
overstated revenue, earnings and cash flow in its United States Securities and
Exchange Commission (“SEC”) filings; (ii) the Company overstated its cash
balance by investing its shareholder cash in highly aggressive and
unconventional securities; (iii) the Company has 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. As a result of
defendants’ false and misleading statements, the Company’s stock traded at
artificially inflated prices during the Class Period.

According to the Complaint, 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, shares in magicJack fell over 13%,
closing at $15.30 per share on January 9, 2013, from a close of $17.31 per
share on January 8, 2012, on volume of over 1.8 million shares.

If you wish to serve as lead plaintiff, you must move the Court no later than
March 19, 2013. A lead plaintiff is a representative party acting on behalf of
other class members in directing the litigation. In order to be appointed lead
plaintiff, the Court must determine that the class member’s claim is typical
of the claims of other class members, and that the class member will
adequately represent the class. Your ability to share in any recovery is not,
however, affected by the decision whether or not to serve as a lead plaintiff.
Any member of the proposed 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.

While Rigrodsky & Long, P.A. did not file the Complaint in this matter, the
firm, with offices in Wilmington, Delaware and Garden City, New York,
regularly litigates securities class, derivative and direct actions,
shareholder rights litigation and corporate governance litigation, including
claims for breach of fiduciary duty and proxy violations in the Delaware Court
of Chancery and in state and federal courts throughout the United States.

Attorney advertising. Prior results do not guarantee a similar outcome.

Contact:

Rigrodsky & Long, P.A.
Timothy J. MacFall, Esquire
Peter Allocco
888-969-4242
516-683-3516
Fax: 302-654-7530
info@rigrodskylong.com
http://www.rigrodskylong.com
 
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