HARTFORD, Conn., Nov. 28, 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 District of New Jersey on behalf of all persons who purchased the common stock of Virgin Mobile USA, Inc. ("Virgin Mobile USA" or the "Company") (NYSE:VM) in connection with the Company's initial public offering which took place on or about October 12, 2007 (the "IPO" or the "Offering"). Also included are those who purchased shares thereafter in the open market.
The Complaint charges that Virgin Mobile USA and certain of its officers, directors and underwriters violated federal securities laws. Specifically, on or about October 10, 2007, Virgin Mobile filed a Form S-1/A Registration Statement (the "Registration Statement") with the Securities and Exchange Commission ("SEC") for the IPO. On or about October 11, 2007, the Prospectus (the "Prospectus") with respect to the IPO, which forms part of the Registration Statement, became effective and, including the exercise of the over-allotment, more than 27.5 million shares of Virgin Mobile's common stock were sold to the public for $15 per share, thereby raising more than $412 million. The complaint alleges that the Registration Statement and the Prospectus contained inaccurate statements of material fact because they failed to disclose that the Company would report a widening loss for the third quarter of 2007 and that subscriber growth trends were slowing dramatically.
On November 15, 2007, after the close of the market, Virgin Mobile issued a press release announcing its financial results for the third quarter of 2007, the period ending September 30, 2007. For the third quarter, the Company reported a loss of a loss of $7.3 million, or ($0.15) per share, as compared to a loss of only $5.1 million, or ($0.10) per share, in the same period the prior year.
If you are a member of the class, you may, no later than January 22, 2008, 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.