NEW YORK, April 24, 2006 (PRIMEZONE) -- Abbey Spanier Rodd Abrams & Paradis, LLP commenced a class action lawsuit in the United States District Court for the Eastern District of New York on behalf of a class (the "Class") of all persons who purchased or acquired securities of Comverse Technology, Inc. ("Comverse" or the "Company") (Nasdaq:CMVT) between April 30, 2001 and April 16, 2006 inclusive (the "Class Period").
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, by issuing a series of material misrepresentations to the market during the Class Period thereby artificially inflating the price of Comverse securities. Defendants include Comverse, Kobi Alexander, Zeev Bregman, David Kreinberg and Itsik Danziger. The Complaint alleges that defendants made material misstatements and omitted information regarding the timing of stock option grants made to key executives. This scheme of manipulating the dates of stock option grants resulted in the overstatement of Comverse's net income, operating income and retained earning between 2001 and the first three quarters of 2006.
On March 14, 2006, Comverse announced that financial restatements might be required. On April 17, 2006, Comverse revealed that it would restate its financial statements for the first three quarters of fiscal 2006, for the 2001-2005 fiscal years and possibly previous periods as well. As a result of these announcements, Comverse stock dropped from $29.15 on March 13, 2006 to $23.31 on April 17, 2006, a decline of over 20 per cent.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Comverse securities during the Class Period. If you purchased or otherwise acquired Comverse securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased Comverse securities during the Class Period, you may, no later than June 19, 2006 request that the Court appoint you as lead plaintiff.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiffs." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
Abbey Spanier Rodd Abrams & Paradis, LLP has been retained to represent the Class. The attorneys at Abbey Spanier Rodd Abrams & Paradis, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of over one billion dollars for investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact:
Nancy Kaboolian, Esq. Abbey Spanier Rodd Abrams & Paradis, LLP 212 East 39th Street New York, New York 10016 (212) 889-3700 (800) 889-3701 (Toll Free) Or e-mail nkaboolian@abbeyspanier.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca