Cohen Milstein Sellers & Toll PLLC Announces the Investigation of magicJack VocalTec, Ltd.

  Cohen Milstein Sellers & Toll PLLC Announces the Investigation of magicJack
  VocalTec, Ltd.

Business Wire

WASHINGTON -- January 30, 2013

Cohen Milstein Sellers & Toll PLLC is conducting an investigation to determine
whether magicJack VocalTec, Ltd. (“magicJack” or the “Company”) and certain of
its officers and directors made false and misleading statements and/or
omissions in violation of Sections 10(b) and 20(a) of the Securities Exchange
Act of 1934.

A class action lawsuit was filed in the U.S. District Court for the Southern
District of New York by another law firm on behalf of purchasers of the common
stock of magicJack VocalTec, Ltd. (NASDAQ: CALL) between February 28, 2012 and
January 8, 2013, inclusive (the “Class Period”).

The complaint alleges that magicJack  and certain of its officers and
directors (“Defendants”) misrepresented and/or failed to disclose that: (1)
the Company overstated its revenue, earnings and cash flow; (2) the Company
overstated its cash balance by investing in highly aggressive, unconventional
securities; (3) the Company overstated its earnings by inconsistently treating
its allowance for doubtful accounts and billing adjustments; (4) the Company
improperly altered the estimated life of its assets, causing a decrease in
depreciation expense; (5) while the Company claimed it was writing down excess
inventory of chips it instead wrote down finished products to hide weakening
sales; and (6) as a result of the foregoing, the Company’s financial
statements were materially false and misleading.

On January 9, 2013 a report was published by an anonymous short-seller using
the pseudonym “Copperfield Research” accusing the Company of overstating its
revenues and income, engaging in “financial shenanigans, every shade of slimy”
and “using accounting gimmicks to create a myriad of unsustainable earnings.”
The report stated that:

We will unequivocally show that magicJack has presented its retail investor
base with earnings press releases and financial tables that are overstated and
later altered based on the corresponding SEC filings. It is our belief that
the company wantonly misrepresented its financial results in front of a
proposed secondary offering, and has continued to provide investor
correspondence that is blatantly misleading and inaccurate. This brazen stock
manipulation has been exacerbated by a series of ploys to attract and pump
retail investors. We believe that an SEC investigation is not only warranted,
but is a necessity as magicJack's Board of Directors appears deeply conflicted
and agnostic towards oversight.

Following this report, the price of magicJack shares fell from $17.31 to
$15.30 on January 9.

Cohen Milstein encourages all investors who purchased magicJack common stock
between February 28, 2012 and January 8, 2013, or former employees with
information concerning this matter to contact the firm.

If you are a magicJack shareholder and would like to discuss your right to
recover for your economic loss, you may, without any cost or obligation, call
Cohen Milstein’s Managing Partner, Steven J. Toll at (888) 240-0775 or (202)
408-4600, or email him at If you wish to serve as
lead plaintiff, you must move the Court no later than March 19, 2013 to
request that the Court appoint you as lead plaintiff. A lead plaintiff is a
representative party acting on behalf of other class members in directing the
litigation. To be appointed lead plaintiff, the Court must decide that your
claim is typical of the claims of other class members, and that you will
adequately represent the class. Your share in any recovery will not be
enhanced or diminished by the decision whether or not to serve as a lead
plaintiff. Any member of the proposed class may retain Cohen Milstein Sellers
& Toll PLLC or other attorneys to serve as your counsel in this action, or you
may do nothing and remain an absent class member.

Cohen Milstein Sellers & Toll PLLC has significant experience in prosecuting
investor class actions and actions involving securities fraud. The firm has
offices in Washington, D.C., New York, Chicago, Philadelphia and Palm Beach
Gardens, and is active in major litigation pending in federal and state courts
throughout the nation.

The firm’s reputation for excellence has repeatedly been recognized by courts
which have appointed the firm to lead positions in complex multi-district or
consolidated litigation. Cohen Milstein Sellers & Toll PLLC has taken a lead
role in numerous important cases on behalf of defrauded investors, and has
been responsible for a number of outstanding recoveries which, in the
aggregate, total over a billion dollars. Prior results do not guarantee a
similar outcome. For more information visit

If you have any questions about this notice or the action, or with regard to
your rights, please contact either of the following:

Steven J. Toll, Esq.
Cameron Clark
Cohen Milstein Sellers & Toll PLLC
1100 New York Avenue, N.W.
West Tower, Suite 500
Washington, D.C. 20005
Telephone: (888) 240-0775 or (202) 408-4600

Attorney Advertising


Cohen Milstein Sellers & Toll PLLC
Steven J. Toll, Esq.
888-240-0775 or 202-408-4600
Cameron Clark
888-240-0775 or 202-408-4600
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