LOS ANGELES, May 16, 2006 (PRIMEZONE) -- Yourman Alexander & Parekh LLP, a law firm with extensive experience in prosecuting claims for securities and consumer fraud, announces that a lawsuit seeking class action status has been filed on behalf of shareholders who purchased or otherwise acquired the securities of Comverse Technology, Inc. ("Comverse" or the "Company") (Nasdaq:CMVT) during the period April 30, 2001, through April 16, 2006, inclusive (the "Class Period"). The matter is pending in the United States District Court for the Eastern District of New York.
The complaint alleges in part that defendants violated federal securities laws by failing to present the true financial condition of Comverse. It is alleged that defendants committed these violations by making false and misleading statements to the investing community concerning the timing of stock option grants made to key executives, and that this practice of manipulating dates of stock option grants resulted in the overstatement of Comverse's financial statements. It is also alleged that as a result of the foregoing, Comverse announced that it would restate its financial statements for the first three quarters of fiscal 2006, for fiscal years 2001-2005, and possibly for previous periods as well. It is further alleged that as a result of these activities, Comverse shares fell approximately 20% from $29.15 on March 13, 2006, to $23.31 on April 17, 2006. Thus, the complaint claims that by omitting to disclose the truth about Comverse's financial performance during the Class Period, defendants artificially inflated the price of the Company's securities for their own personal gain.
Since a class has not yet been certified, you are not represented by counsel in this matter. If an individual or institution purchased or acquired Comverse securities from April 30, 2001, through April 16, 2006, inclusive, and suffered a loss, the deadline to move for appointment as Lead Plaintiff is June 19, 2006. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The securities laws require the Court to consider the class member(s) with the largest financial interest, i.e. the largest financial loss, as presumptively the most adequate Lead Plaintiff(s). In order to serve as a Lead Plaintiff, you must meet certain legal requirements. While your ability to share in any recovery is not affected by your decision of whether or not to seek appointment as a Lead Plaintiff, Lead Plaintiffs are responsible for making important decisions which could affect the overall recovery for class members, including decisions concerning settlement. If you are only concerned with your ability to participate as a class member, you do not need to take any action at this time.
If you: (i) wish to discuss this action, have information concerning this case, or acquired shares through your Comverse retirement account; (ii) have questions concerning this Notice or your rights or interests with respect to this litigation; or (iii) have any other potential matters that you would care to discuss, please contact Vahn Alexander of Yourman Alexander & Parekh LLP, 3601 Aviation Blvd., Suite 3000, Manhattan Beach, California 90266 by telephone, toll-free at (800) 725-6020, or by email to valexander@yaplaw.com. There will be no obligation or cost to you concerning your inquiry. For more information please visit www.yaplaw.com.