Klafter & Olsen LLP Files Class Action Lawsuit Against InfoSonics Corporation
14 6월 2006 - 6:14AM
PR Newswire (US)
WASHINGTON, June 13 /PRNewswire/ -- Klafter & Olsen LLP has
filed a class action complaint against InfoSonics Corporation
("InfoSonics") (AMEX:IFO) in the U.S. District Court for the
Southern District of California on behalf of investors who
purchased the publicly traded securities of InfoSonics during the
period from May 9, 2006 through and including June 9, 2006 (the
"Class Period"). The complaint alleges that InfoSonics and its top
officers engaged in a scheme to defraud InfoSonics investors in
violation of the federal securities laws by reporting false
financial results on May 8, 2006 for its first quarter ended March
31, 2006. Specifically, the Complaint alleges that defendants knew,
or with deliberate recklessness disregarded, that the Company had
improperly accounted for warrants issued in connection with a
January 2006 private placement which enabled it to report net
income of $1.738 million for that quarter. Before the market opened
on Monday, June 12, 2006, InfoSonics shocked the market when it
disclosed that it would need to restate its previously reported net
income for the first quarter down to $1.173 million, a decrease of
32.5%, due to the improper accounting treatment of the warrants.
InfoSonics stock immediately plunged more than 28% that day on
extraordinarily high volume. The Complaint further alleges that,
while in possession of material nonpublic information concerning
InfoSonics accounting for the warrants, defendants sold massive
amounts of their personal holdings between May 11, 2006 and June 7,
2006 for proceeds exceeding $3 million. Indeed, as the Company
admitted in a Form 8-K filed on June 12, 2006 with the SEC,
InfoSonics had determined by Monday, June 5, 2006 that it would
need to restate its previously reported financial results because
it had improperly accounted for the warrants. Nevertheless, its
Chief Financial Officer and the President of the Company's Latin
American operations continued to sell their personal InfoSonics
stock even after that determination. If you purchased InfoSonics
publicly traded securities during the Class Period (May 9, 2006 -
June 9, 2006), you may, no later than August 14, 2006, move to be
appointed as a Lead Plaintiff. A Lead Plaintiff is a representative
party that acts on behalf of other class members in directing the
litigation. If you have sustained losses on your purchases of
InfoSonics publicly traded securities during the Class Period,
please contact Klafter & Olsen LLP at
http://www.klafterolsen.com/ or call us at 202/261-3553 for a more
thorough explanation of the Lead Plaintiff selection process and
the claims asserted against InfoSonics. Klafter & Olsen LLP has
offices in Washington D.C. and New York. The founding partners have
over thirty years combined experience representing plaintiffs and
defendants in a wide variety of litigation matters including
securities, antitrust, corporate governance, commercial, Title VII,
trespass, constitutional, and consumer actions. Please visit our
website for more information about the Firm. DATASOURCE: Klafter
& Olsen LLP CONTACT: Kurt B. Olsen of Klafter & Olsen LLP,
+1-202-261-3553 Web site: http://www.klafterolsen.com/
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