PHILADELPHIA, Feb. 24, 2003 (PRIMEZONE) -- The law firm of Spector, Roseman & Kodroff, P.C. announces that a class action lawsuit was commenced in the United States District Court for the District of Utah against ClearOne Communications, Inc. ("ClearOne" or the "Company") (Nasdaq:CLRO) and certain ClearOne executives, on behalf of all purchasers of ClearOne securities between January 1, 2001 and January 15, 2003, inclusive (the "Class Period").
The suit alleges that defendants violated the Federal Securities Laws by issuing a number of false and misleading press releases concerning ClearOne's financial results and business prospects. The suit further alleges that in order to inflate the price of ClearOne's stock, defendants caused the Company to falsely report its financial results during the Class Period through improper revenue recognition practices, including recognizing revenue for shipments to distributors even though the distributors had the right to return or exchange unsold goods. On January 15, 2003, the Securities and Exchange Commission filed a federal lawsuit alleging that defendants violated numerous federal securities laws, primarily through a program of "channel stuffing" -- shipping large amounts of inventory to the company's distributors with the understanding that the distributors did not have to pay for these products until the distributors resold the products, and that in some instances the distributors were given the right to return or exchange products the distributors were unable to sell.
If you purchased ClearOne securities during the Class Period, you may, no later than March 17, 2003, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in ClearOne securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action, please visit http://www.srk-law.com/dbjoinaclassaction.asp. If you would like to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via E-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania and San Diego, California, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca