, Jan. 23, 2013 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at magicJack VocalTec Ltd. ("magicJack" or the "Company") (NasdaqGM: CALL).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) magicJack had overstated revenue, earnings and cash flow in its SEC filings; (2) the Company overstated its cash balance by investing its shareholder cash in risky, alternative securities; (3) the Company exaggerated its earnings by increasing its allowance for doubtful accounts and billing adjustments; (4) the Company incorrectly reduced the depreciation expenses for magicJack assets; and (5) while the Company claimed that it was writing down its excess inventory of microchips, it instead wrote down finished products in order to camouflage declining sales momentum.
January 9, 2013
, Copperfield Research published a report revealing that the Company had been consistently overstating its revenue and profitability. Copperfield Research stated that "magicJack has presented its retail investor base with earnings press release and financial tables that are overstated and later altered based on the corresponding SEC filings." On this news, magicJack stock declined
per share or more than 11%, to close at
per share on
January 9, 2013
Request more information now by clicking here: www.faruqilaw.com/CALL. There is no cost or obligation to you.
If you invested in magicJack stock or options between
February 28, 2012
January 8, 2013
and would like to discuss your legal rights, visit
. You can also contact us by calling
toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to
. Faruqi & Faruqi, LLP also encourages anyone with information regarding magicJack's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
Attorney Advertising. The law firm responsible for this advertisement is Faruqi & Faruqi, LLP (
). Prior results do not guarantee or predict a similar outcome with respect to any future matter. We welcome the opportunity to discuss your particular case. All communications will be treated in a confidential manner.FARUQI & FARUQI, LLP369 Lexington Avenue, 10th Floor
New York, NY
Richard Gonnello, Esq.
Francis McConville, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
SOURCE Faruqi & Faruqi, LLP