NEW YORK, Feb. 15, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against magicJack VocalTec Ltd., ("magicJack" or the "Company") (Nasdaq:CALL) and certain of its officers. The class action filed, in United States District Court, Southern District of New York, and docketed under 13-CV-0448, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of magicJack between February 28, 2012 and January 8, 2013, both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased magicJack securities during the Class Period, you have until March 19, 2013 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
magicJack provides voice-over-Internet-protocol telephone services. The Company develops and markets computer software and hardware for making telephone calls over the Internet.
Throughout the Class Period, Defendants made materially false and misleading statements regarding the Company's business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) the Company overstated revenue, earnings and cash flow in its SEC filings; (ii) the Company overstated its cash balance by investing its shareholder cash in highly aggressive and unconventional securities; (iii) the Company overstated its earnings by inconsistently treating its allowance for doubtful accounts and billing adjustments; (iv) the Company improperly altered the estimated life of its assets, causing a decrease in its depreciation expense; (v) while the Company claimed that it was writing down its excess inventory of chips, it instead wrote down finished products in order to hide weakening sales momentum; and (vi) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On January 9, 2013, Copperfield Research published a report revealing, among other things, that the Company had been consistently overstating its revenue and profitability. According to the report, "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 $2.01 per share or more than 11%, to close at $15.30 per share on January 9, 2013.
The Pomerantz Firm, with offices in New York, Chicago, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.