INVESTOR ALERT: KGS Announces Initial Filing of Securities Class Action Lawsuit Against ShoreTel, Inc. - SHOR
(Market Wire Via Thomson Dialog NewsEdge) NEW ORLEANS, LA, January 16 / MARKET WIRE/ --
Kahn Gauthier Swick, LLC ("KGS") has filed
the first class action lawsuit against ShoreTel, Inc. ("ShoreTel" or the
"Company") (NASDAQ: SHOR) in the United States District Court for the
Northern District of California, on behalf of shareholders who purchased
the common stock of ShoreTel in connection with the Company's IPO on or
about July 3, 2007, or who purchased shares thereafter in the open market.
No class has yet been certified in this action.
UNLESS A CLASS IS CERTIFIED, YOU ARE NOT PERSONALLY REPRESENTED BY COUNSEL
UNLESS YOU RETAIN AN ATTORNEY.
If you purchased shares of ShoreTel in connection with the IPO or if you
purchased shares thereafter in the open market, you are urged to contact
Lewis Kahn, Managing Partner, KGS, toll free 1-866-467-1400, ext. 100, via
cell phone at 504-301-7900, or by email at [email protected] to
learn about your legal rights and how this action may benefit you. For
further information on KGS, please visit www.kgscounsel.com.
ShoreTel, certain of its officers and directors, and the Company's
underwriters are charged with including, or allowing the inclusion of,
materially false and misleading statements in the Registration Statement
and Prospectus issued in connection with the IPO, in violation of the
Securities Act of 1933.
The Complaint alleges that following ShoreTel's July 3, 2007 IPO -- which
raised gross proceeds of at least $86.3075 million -- investors learned the
truth about the Company on January 7, 2008 -- 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. At that time, defendants first
belatedly revealed that sales to new customers were substantially lower
than expected, and that sales to existing customers was not sufficient to
offset these declines. In addition, by this time, it became obvious to
investors that the Company did not maintain adequate internal controls, and
that a proper due diligence investigation into the Company, by the
Underwriters, was not properly carried out prior to the Offering.
On this news, on January 7, 2008, over 6.0 million shares of ShoreTel
traded -- over 20 times average daily trading volume -- and Company shares
plummeted -- falling over 50% to close at $6.02 per share.
If you wish to serve as lead plaintiff in this class action lawsuit, you
must move the Court no later than March 17, 2008. Any member of the
purported class may move the Court to serve as lead plaintiff through
counsel of their choice, or may choose to do nothing and remain an absent
class member. If you would like to discuss your legal rights, you may
e-mail or call KGS Managing Partner Lewis Kahn, without obligation or cost
to you, toll free 1-866-467-1400, ext. 100, or by email at
[email protected]. To learn more about KGS, you may visit
http://www.kgscounsel.com. KGS focuses its practice on securities class
action litigation, and has been appointed lead counsel in numerous federal
securities class actions.
SPECIAL NOTICE: While federal law does not prohibit other lawyers from
"announcing" this class action through the issuance of other press
releases, KGS is the law firm that researched, investigated, drafted, and
filed the securities class action case against ShoreTel. If you are a
ShoreTel shareholder who decides to contact one of these lawyers, KGS
reminds you to fully interview any such lawyer to assure that he or she
thoroughly understands the facts surrounding the substantive claims KGS has
filed in Court. It is critically important that interested parties
carefully evaluate any other firm that may be competing with KGS to
prosecute the ShoreTel class action. Critical components of a law firm's
ability to successfully prosecute this action and obtain a strong recovery
for you include its knowledge of applicable federal securities laws, the
resources it will dedicate to prosecution of the case (including the number
of lawyers the firm has available for the ShoreTel class action), AND
especially the quality of the firm's work.
1-866-467-1400, ext. [email protected]
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