Glancy Binkow & Goldberg LLP announces that a class action lawsuit has been filed in the United States District Court, Northern District of California on behalf of all purchasers of the common stock of VeriFone Systems, Inc. (“VeriFone” or the “Company”) (NYSE:PAY) between December 14, 2011 and February 19, 2013, inclusive (the “Class Period”).
VeriFone designs, markets, and services electronic payment solutions worldwide. The complaint alleges that: (a) the Company failed to execute its plan to move to a more subscriptions-based service model; (b) past acquisitions masked what was happening at the Company; (c) the Company’s accounting recognition was overly aggressive; (d) the Company lacked adequate internal and financial controls; and (e) as a result, the Company’s financial statements were materially false and misleading at all relevant times.
On February 20, 2013, the Company announced that it expected first quarter adjusted earnings to be between $0.47 to $0.57 per share on revenue of $424 million – well below analysts' profit forecast of $0.73 per share on revenue of $492 million. The Company also announced a new revenue recognition policy which prevented it from recognizing revenues that quarter from distributors in the Middle East and Africa. On February 21, 2013, VeriFone shares declined $13.65 per share, or nearly 43%, to close on February 21, 2013, at $18.24 per share, on extremely heavy trading volume.
No class has yet been certified in this action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased VeriFone common stock during the Class Period, you have certain rights, and have until May 6, 2013 to move for lead plaintiff status. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1925 Century Park East, Suite 2100, Los Angeles, California 90067, telephone: 310-201-9150, Toll-Free: 888-773-9224, e-mail: email@example.com, or visit our website at http://www.glancylaw.com.This press release may be considered Attorney Advertising in some jurisdictions under the applicable law and ethical rules.