Pomerantz Law Firm Has Filed a Class Action Against VeriFone Systems, Inc.,
and Certain Officers -- PAY
NEW YORK, March 7, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford
Dahlstrom & Gross LLP has filed a class action lawsuit against VeriFone
Systems, Inc. ("VeriFone" or the "Company") (NYSE:PAY) and certain of its
officers. The class action filed in United States District Court, Northern
District of California, and docketed under C 13 1038, is on behalf of a class
consisting of all persons or entities who purchased or otherwise acquired
securities of VeriFone between December 14, 2011 and February 19, 2013, both
dates inclusive of (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 VeriFone securities during the Class
Period, you have until May 6, 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,
telephone number, and number of shares purchased.
VeriFone is a global provider of technology that enables electronic payment
transactions and value-added services at the point of sale.
The Complaint alleges that throughout the Class Period, Defendants issued as
series of materially false and misleading statements regarding the Company's
revenues and operations, by failing to disclose that: (i) the Company did not
properly execute its plan to move to a more subscriptions-based service model;
(ii) past acquisitions had masked the Company's sharply declining revenue
base; (iii) the Company was inappropriately recognizing revenues from
distributors in periods where such revenues should have been deferred; (iv)
the Company lacked adequate internal and financial controls; and (v) as a
result of the above, the Company's financial statements were materially false
and misleading at all relevant times.
On February 4, 2013, the Company announced the retirement of its Chief
Financial Officer ("CFO"), as well as its Vice Chairman, Ellmore Waller.
Defendant Robert Dykes ("Dykes") was named as the Company's new CFO. On this
news, VeriFone stock declined $0.87 per share or nearly 2.5%, to close at
$34.37 per share.
On February 20, 2013, the Company announced its preliminary financial results
for the first fiscal quarter ended January 31, 2013. The Company announced
that it expected first quarter adjusted earnings to be between $0.47 to $0.57
per share on revenue of $424 million, falling well below analysts' profit
forecast of $0.73 per share on revenue of $492 million. The Company also
announced a new revenue recognition policy which prevented it from recognizing
revenues that quarter from distributors in the Middle East and Africa.
On this news, shareholders hammered VeriFone's share price, causing it to
spiral $13.65 per share or nearly 43%, to close at $18.24 per share on
February 21, 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
Press spacebar to pause and continue. Press esc to stop.