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Spector, Roseman & Kodroff, P.C. Announces The Filing of a Class Action Suit Against Sonus Networks, Inc.
PHILADELPHIA, April 2 /PRNewswire/ -- The law firm of Spector, Roseman & Kodroff, P.C. announces that a securities class action lawsuit was commenced in the United States District Court for the District of Massachusetts, on behalf of purchasers of the common stock of Sonus Networks, Inc. (Sonus or the Company) between May 12, 2003 through March 26, 2004, inclusive (the Class Period).
The Complaint alleges that the defendants violated the federal securities laws by issuing materially false and misleading statements contained in press releases and filings with the Securities and Exchange Commission during the Class Period. Named as defendants are the Company, its chief executive officer, Hassan Ahmed, and its chief financial officer, Stephen J. Nill. According to the complaint, the defendants improperly recognized revenue and violating Generally Accepted Accounting Principles (GAAP) governing the timing of revenue recognition which misrepresented the true financial condition of the Company. Defendants' misrepresentations caused the Company's stock to trade at artificially high prices during the Class Period.
On February 11, 2004, Sonus disclosed that a year-end audit had found that certain issues, practices and actions of certain employees relating to both the timing of revenue recognized from certain customer transactions and to certain other financial statement accounts could affect the Company's results for 2003 and prior periods. Prior to disclosing these adverse facts, Sonus completed a $126 million public offering, and Company insiders sold approximately $2 million of their personally held shares to the unsuspecting public. On February 12, 2004, Sonus' stock price dropped approximately 19% from the previous day's close. On March 29, 2004, Sonus announced that it would delay the filing of its amended annual report for fiscal year 2003, which could result in a delisting of its stock from NASDAQ. Sonus further reported that it expects to restate its financial results for fiscal year 2002 and is considering expanding its ongoing accounting review to include additional prior periods. In response to this news, Sonus stock fell an additional 14% from $4.56 on March 26, 2004 to close at $3.92 on March 29, 2004.
If you purchased Sonus securities during the Class Period, you may, no later than April 12, 2004, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the largest financial interest in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the largest financial interest, and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in Sonus securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action, please visit http://www.srk-law.com/dbjoinaclassaction.asp. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via e-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com/.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.
CONTACT: Robert M. Roseman - (888) 844-5862
Spector, Roseman & Kodroff, P.C.
CONTACT: Robert M. Roseman, Spector, Roseman & Kodroff, P.C.,+1-888-844-5862
Web site: http://www.srk-law.com/dbjoinaclassaction.asphttp://www.srk-law.com/
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