DENVER, July 8, 2008 (PRIME NEWSWIRE) -- Dyer & Berens LLP (www.DyerBerens.com) today announced that a class action has been commenced in the United States District Court for the Central District of California on behalf of purchasers of MRV Communications, Inc. ("MRV" or the "Company") (Nasdaq:MRVC) common stock during the period between March 31, 2003 and June 5, 2008 (the "Class Period"). The complaint charges MRV and certain of its current and former officers with violations of the Securities Exchange Act of 1934.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Jeffrey A. Berens of Dyer & Berens LLP at (888) 300-3362 or (303) 861-1764, or via e-mail at jeff@dyerberens.com. 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.
MRV is a supplier of communications equipment and services to carriers, governments and enterprise customers worldwide. The complaint alleges that, during the Class Period, defendants made false and misleading statements concerning the Company's employee stock option grant practices and financial results. Defendants allegedly caused or allowed MRV to issue statements that failed to disclose or misstated the following: (i) that the Company had problems with its internal controls that prevented it from issuing accurate financial reports and projections; (ii) that because of improperly recorded stock-based compensation expenses the Company's financial results violated GAAP; and (iii) that the Company's public disclosures covering a seven-year period presented an inflated view of MRV's earnings and earnings per share, which would later have to be restated.
On June 5, 2008, MRV announced that it expects to restate its 2002 to 2008 financial statements, and that its previously-issued financial statements, earnings press releases, and similar communications should no longer be relied upon. The restatement relates to the previously undisclosed stock-option backdating problems and related accounting issues. This report came after the Company had earlier announced that a review of its options granting practices had found no evidence that grant dates were designed to occur on dates with lower, more favorable exercise prices. MRV's management now states that it is likely that these previous conclusions were incorrect. Upon disclosure of this news, MRV's share price plummeted approximately 24%.
Plaintiff seeks to recover damages on behalf of all purchasers of MRV common stock during the Class Period. The plaintiff is represented by Dyer & Berens LLP, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud. The firm's extensive experience in securities litigation, particularly in cases brought under the Private Securities Litigation Reform Act, has contributed to the recovery of hundreds of millions of dollars for aggrieved investors. For more information about the firm, please go to www.DyerBerens.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca