DENVER, Oct. 9, 2008 (GLOBE NEWSWIRE) -- Dyer & Berens LLP today announced that it has filed a class action lawsuit in the United States District Court for the Southern District of California on behalf of purchasers of Novatel Wireless, Inc. ("Novatel" or the "Company") (Nasdaq:NVTL) common stock during the period between February 5, 2007 and August 19, 2008, inclusive (the "Class Period"). The complaint charges Novatel and certain of its officers and directors with violations of the Securities Exchange Act of 1934.
If you are a purchaser of Novatel common stock during the Class Period, you have the right to petition the Court to be appointed a "lead plaintiff." A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Any such request must satisfy certain criteria and be made on or before November 17, 2008. 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. If you would like to discuss a potential lead plaintiff appointment, or your rights and interests with respect to the lawsuit, you may contact Jeffrey A. Berens, Esq. at (888) 300-3362, (303) 861-1764, or via email at jeff@dyerberens.com.
The class action complaint alleges that during the Class Period, defendants misrepresented Novatel's financial performance. For instance, defendants failed to disclose that the Company was recognizing revenue in violation of its own revenue cut-off procedures and Generally Accepted Accounting Principles, thus rendering the Company's publicly reported financial results materially false. The defendants also repeatedly misrepresented the status of an internal accounting review by the Company's Audit Committee. On May 13, 2008, defendants represented that the Company was unable to file its Form 10-Q on time because of a review of a single customer contract which they represented was "substantially completed today." Over three months later, on August 19, 2008, defendants admitted that the review was still ongoing, that it involved at least six transactions representing $9.1 million in revenue, and that when the review was completed a decision would be made as to whether a restatement would be required. As a result of these disclosures, Novatel's stock price declined 25%.
Plaintiff seeks to recover damages on behalf of all purchasers of Novatel common stock during the Class Period. The plaintiff is represented by Dyer & Berens LLP. 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.globenewswire.com/ca.