HARTFORD, Conn., Oct. 29, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Southern District of New York on behalf of all persons who purchased the publicly traded securities of LM Ericsson Telephone Co. ("Ericsson") (Nasdaq:ERIC) between September 11, 2007 and October 15, 2007, inclusive (the "Class Period").
The Complaint alleges that Ericsson and certain of its officers and directors violated federal securities laws. Specifically, the complaint alleges that, during the Class Period, defendants issued numerous materially false and misleading statements regarding the Company's business and financial results. The complaint alleges that Defendants knew or recklessly disregarded that: (i) the Company was experiencing declining sales in its networks due to lower sales of expansions and upgrades of mobile networks; (ii) sales in Western Europe were declining due to operator consolidation in several markets; and (iii) as a result, Defendants lacked a reasonable basis for their positive statements about the Company's business.
On October 16, 2007, before the market opened, Ericsson issued a release entitled "Lower than expected result for Ericsson in third quarter 2007." That same day, after these results were issued, Ericsson's stock collapsed to close at $31.33 per share, a decline of 24%.
If you are a member of the class, you may, no later than December 28, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.