Law Offices of Howard G. Smith announces that a class action lawsuit has been filed in the United States District Court for the 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) VeriFone’s accounting recognition was overly aggressive; (d) VeriFone 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 VeriFone 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 that quarter’s revenues from distributors in the Middle East and Africa.
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 this Notice or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, or by email to firstname.lastname@example.org, or visit our website at http://www.howardsmithlaw.com.