HARTFORD, Conn., Jan. 23, 2008 (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 Northern District of California on behalf of all persons who purchased the common stock of ShoreTel, Inc., ("ShoreTel" or the "Company") (Nasdaq:SHOR) pursuant to the Company's initial product offering (IPO) on or about July 3, 2007 until present (the "Class Period").
The Complaint charges that ShoreTel and certain of its officers, directors and underwriters violated federal securities laws. Specifically, the Complaint alleges that ShoreTel did not maintain adequate internal controls, and that a proper due diligence investigation into the Company, by the underwriters, was not carried out prior to ShoreTel's July 3, 2007 IPO, which raised gross proceeds of at least $86.3075 million. On January 7, 2008, investors learned the truth about the Company including that the problems which existed at the time of the IPO would result in extremely disappointing results for the third quarter of fiscal 2008 (the period ended December 31, 2007), including much lower than expected revenues and higher than expected costs and expenses. Defendants also revealed that sales to new customers were substantially lower than expected, and that sales to existing customers were not sufficient to offset these declines. On this news, ShoreTel stock fell over 50 percent per share, to a close of $6.02 per share on January 7, 2008.
If you are a member of the class, you may, no later than March 16, 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.