Morgan & Morgan Announces That a Class Action Suit Has Been Filed Against
VeriFone Systems, Inc. -- PAY
NEW YORK, March 13, 2013 (GLOBE NEWSWIRE) -- Morgan & Morgan announces that a
class action lawsuit was filed in the U.S. District Court for the Northern
District of California on behalf of purchasers of VeriFone Systems, Inc.
securities ("VeriFone" or the "Company") (NYSE:PAY) during the class period
December 14, 2011 through February 19, 2013, inclusive (the "Class Period").
The class action seeks to recover damages suffered by investors from the
Company and certain of its officers and directors as a result of alleged
violations of the federal securities laws.
If you purchased VeriFone securities between December 14, 2011 and February
19, 2013, you may, no later than May 6, 2013, request that the Court appoint
you lead plaintiff of the proposed class. Lead plaintiff is a representative
party who acts on behalf of other class members in directing the litigation.
Any member of the purported 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.
If you purchased VeriFone securities and are interested in learning more about
the VeriFone (PAY) securities fraud class action, please contact George
Pressly, Esq. at 1 (800) 631-6234 or email George at
The Complaint alleges that Defendants issued a series of materially false and
misleading statements regarding the Company's revenues and operations, by
failing to disclose that: (i) the Company failed to move to a more
subscriptions-based service model; (ii) past acquisitions masked the Company's
sharply declining revenue base; (iii) the Company inappropriately recognized
revenues in periods when 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 20, 2013, VeriFone announced its preliminary financial results for
the fiscal quarter ended January 31, 2013 to be between $0.47 to $0.57 per
share on revenue of $424 million. This range fell 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
some revenues in that quarter. On this news, shareholders hammered VeriFone's
share price, causing a plunge of $13.65 on extremely high volume to close at
$18.24 per share on February 21, 2013.
About Morgan & Morgan
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CONTACT: Morgan & Morgan
Peter Safirstein, Esq.
28 West 44th Street
New York, NY 10036
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