Law Offices of Howard G. Smith Announces Investigation On Behalf of
Investors of VeriFone Systems, Ltd.
BENSALEM, Pa. -- March 29, 2013
Law Offices of Howard G. Smith announces that it is investigating potential
claims against VeriFone Systems, Inc. (“VeriFone” or the “Company”) (NYSE:PAY)
concerning possible violations of federal securities laws. The investigation
focuses on allegations that certain statements issued by VeriFone between
December 14, 2011 and February 19, 2013 were false and misleading regarding
the Company’s operations and financial performance.
VeriFone designs, markets and services electronic payment solutions worldwide.
The investigation is related to allegations that the Company (a) failed to
execute on its plan to move to a more subscriptions-based service model; (b)
that past acquisitions had masked what was happening at the Company; and (c)
that the Company’s accounting recognition has been overly aggressive.
On February 20, 2013, VeriFone announced its preliminary financial results for
the first fiscal quarter ended January 31, 2013. The Company announced that it
expected first quarter adjusted earnings of $0.47 to $0.57 per share on
revenue of $424 million, 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. The next day, February 21,
2013, VeriFone shares fell $13.65 from the previous day’s close of $31.89 per
share, to a closing price of $18.24 per share, on extremely heavy trading
If you purchased VeriFone shares, if you have information or would like to
learn more about these claims, or if you wish to discuss these matters or have
any questions concerning this announcement or your rights or interests with
respect to these matters, please contact Howard G. Smith, Esquire, of Law
Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem,
Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888)
638-4847, or by email to firstname.lastname@example.org, or visit our website
Law Offices of Howard G. Smith
Howard G. Smith, Esquire
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