NEW YORK, March 16, 2005 (PRIMEZONE) -- Goodkind Labaton Rudoff & Sucharow LLP filed a class action lawsuit on March 15, 2005 in the United States District Court for the District of Arizona, on behalf of persons who purchased or otherwise acquired publicly traded securities of Hypercom Corporation ("Hypercom" or the "Company") (NYSE:HYC) between April 30, 2004 and February 3, 2005, inclusive, (the "Class Period"). The lawsuit was filed against Hypercom and certain officers and directors ("Defendants").
If you are a member of this class you can view a copy of the complaint and join this class action online at http://www.glrslaw.com/get/?case=Hypercom
The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that the Company failed to disclose or misrepresented that its leases originated by its U.K. subsidiary, Hypercom EMEA, Inc., were improperly accounted for as sales leases rather than operating leases until February 4, 2005, when Hypercom announced that it would restate its 2004 quarterly financials. This improper recording of the leases had the impact of overstating its net revenue in the first three quarters of 2004 by at least $4 million and as such the Company's results were not prepared in accordance with Generally Accepted Accounting Principles.
The impact of this restatement would be to decrease net revenue by up to $4 million. Shares of Hypercom reacted negatively to the news, falling $1.00 per share or 18.3% to close at $4.46 on heavy volume.
Plaintiffs are represented by the law firm of Goodkind Labaton Rudoff & Sucharow LLP. Goodkind Labaton is one of the country's premier national law firms that represent individual and institutional investors in class action, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts. Goodkind Labaton was recently ranked fourth in total recoveries in 2003 among the top 50 plaintiffs' law firms by Institutional Shareholder Services (ISS), the world's leading provider of proxy and corporate governance services. Notably, Goodkind Labaton recovered over half a billion dollars for its clients in the last two years.
If you bought Hypercom securities between April 30, 2004 and February 3, 2005, inclusive, you may qualify to serve as Lead Plaintiff. Lead Plaintiff papers must be filed with the court no later than April 11, 2005. If you would like to consider serving as lead plaintiff or have any questions about the lawsuit, please contact one of our representatives or Christopher Keller, Esq. at 800-321-0476.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca