DENVER, Oct. 30, 2008 (GLOBE NEWSWIRE) -- Dyer & Berens LLP (www.DyerBerens.com) today announced that a class action has been commenced in the United States District Court for the Northern District of California on behalf of all purchasers of Cadence Design Systems, Inc. ("Cadence" or the "Company") (Nasdaq:CDNS) common stock during the period between April 23, 2008 and October 22, 2008 (the "Class Period"). The case is entitled Hu v. Cadence Design Systems, Inc., Michael J. Fister, William Porter and Kevin S. Palatnik. The complaint charges Cadence and certain of its current and former officers with violations of the Securities Exchange Act of 1934.
If you wish to serve as a lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Jeffrey A. Berens, Esq. at (888) 300-3362, (303) 861-1764, or via email at jeff@dyerberens.com. Any member of the putative class may move the Court to serve as a lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
Cadence develops electronic design automation, or EDA, software and hardware. The complaint alleges that, during the Class Period, defendants misrepresented Cadence's financial performance and prospects, overstated its revenues, and caused it to file false and misleading financial statements with the SEC. More specifically, defendants allegedly caused Cadence to improperly report approximately $24 million in revenue in the first quarter of 2008 and in the six months ended June 28, 2008 that will not be earned until the later quarters and, therefore, should be properly recognized ratably over the duration of the customer contracts.
On October 15, 2008, the Company announced the departures of its Chief Executive Officer and four other senior executives. In response to this surprise announcement, the price of Cadence common stock dropped approximately 15%. Merely a week later, on October 22, 2008, defendants stunned investors by acknowledging that the Company was reviewing the recognition of revenue related to customer contracts signed in the first quarter of 2008 and that it expected to restate its financial statements not only for that quarter, but also the first half of 2008. As a result of these disclosures, Cadence's stock price dropped another 25%, as the artificial inflation caused by defendants' false and misleading statements came out of the stock price.
Plaintiff seeks to recover damages on behalf of all purchasers of Cadence common stock during the Class Period. The plaintiff is represented by Dyer & Berens LLP, which has expertise in prosecuting investor class actions involving financial fraud. 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.