HARTFORD, Conn., July 9, 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 Central District of California on behalf of all those who purchased the common stock of MRV Communications, Inc. ("MRV" or the "Company") (Nasdaq:MRVC) between March 31, 2003 and June 5, 2008, inclusive (the "Class Period").
The Complaint charges that MRV and certain of its officers and directors violated federal securities laws by issuing materially false and misleading statements regarding the Company's employee stock option grant practices and financial results. It is alleged that defendants caused or allowed MRV to issue statements that failed to disclose or misstated the following: (i) that MRV had problems with its internal controls that prevented it from issuing accurate financial reports and projections; (ii) that because of improperly recorded stock-based compensation expenses the Company's financial results violated GAAP; and (iii) that the Company's public disclosures covering a seven-year period presented an inflated view of MRV's earnings and earnings per share, which would later have to be restated.
On June 5, 2008, MRV announced that it expects to restate its 2002 to 2008 financial statements, and that its previously-issued financial statements, earnings press releases, and similar communications should no longer be relied upon. The restatement relates to the previously undisclosed stock-option backdating problems and related accounting issues. This report came after the Company had earlier announced that a review of its options granting practices had found no evidence that grant dates were designed to occur on dates with lower, more favorable exercise prices. MRV's management now states that it is likely that these previous conclusions were incorrect. On this news, MRV's stock price fell approximately 24%.
If you are a member of the class, you may, no later than September 8, 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.
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.