| Company: | UTStarcom, Inc. |
| Ticker Symbol: | NASD: UTSI |
| Class Period: | April 16, 2003 to August 11, 2004 |
| Date Filed: | Nov-18-04 |
| Lead Plaintiff Deadline: | Jan-12-05 |
| Court: | Northern District, CA |
| Allegations: |
A class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of UTStarcom, Inc. ("UTStarcom") (NASDAQ:UTSI) common stock during the period between April 16, 2003 and August 11, 2004 (the "Class Period").
The complaint charges UTStarcom and certain of its officers and directors with violations of the Securities Exchange Act of 1934. UTStarcom designs, manufactures and sells telecommunications equipment and products, and provides services associated with their operation.
The complaint alleges that during the Class Period, defendants caused UTStarcom's shares to trade at artificially inflated levels through the issuance of false and misleading financial statements. As a result of this inflation, UTStarcom was able to raise proceeds of $475 million through a secondary offering and the Company insiders were able to reap $56 million in illegal insider trading proceeds. The true facts, which were known by each of the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company had massive supply chain constraints delaying legitimate revenue recognition; (b) the Company's prime margins were eroding in China; (c) the Company lacked internal control over its ability to analyze revenue recognition criteria; (d) the Company was in violation of Nasdaq rules requiring that the Board of Directors have a majority which is independent; (e) the Company's Japanese-related revenue projections were overstated by $290 million; and (f) as a result, defendants' projections for FY 2004 and 2005 were grossly inflated.
On August 10, 2004, the Company issued a press release announcing that it had "filed a request with the Securities and Exchange Commission for a five-day extension with respect to the filing of its Quarterly Report on Form 10-Q for the period ended June 30, 2004 .... Specifically, in connection with its second quarter closing and review process, UTStarcom identified a single equipment sale transaction in a single geographical sales market in the amount of approximately $1.9 million that was initially proposed to be recorded as revenue for the second quarter. Upon further analysis, UTStarcom determined that this transaction did not meet the qualification requirements for recognition within the second quarter and as a result did not include this as revenue in the release of its second quarter results." The stock dropped to $15.37 per share on this news.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
The complaint charges UTStarcom and certain of its officers and directors with violations of the Securities Exchange Act of 1934. UTStarcom designs, manufactures and sells telecommunications equipment and products, and provides services associated with their operation.
The complaint alleges that during the Class Period, defendants caused UTStarcom's shares to trade at artificially inflated levels through the issuance of false and misleading financial statements. As a result of this inflation, UTStarcom was able to raise proceeds of $475 million through a secondary offering and the Company insiders were able to reap $56 million in illegal insider trading proceeds. The true facts, which were known by each of the defendants but concealed from the investing public during the Class Period, were as follows: (a) the Company had massive supply chain constraints delaying legitimate revenue recognition; (b) the Company's prime margins were eroding in China; (c) the Company lacked internal control over its ability to analyze revenue recognition criteria; (d) the Company was in violation of Nasdaq rules requiring that the Board of Directors have a majority which is independent; (e) the Company's Japanese-related revenue projections were overstated by $290 million; and (f) as a result, defendants' projections for FY 2004 and 2005 were grossly inflated.
On August 10, 2004, the Company issued a press release announcing that it had "filed a request with the Securities and Exchange Commission for a five-day extension with respect to the filing of its Quarterly Report on Form 10-Q for the period ended June 30, 2004 .... Specifically, in connection with its second quarter closing and review process, UTStarcom identified a single equipment sale transaction in a single geographical sales market in the amount of approximately $1.9 million that was initially proposed to be recorded as revenue for the second quarter. Upon further analysis, UTStarcom determined that this transaction did not meet the qualification requirements for recognition within the second quarter and as a result did not include this as revenue in the release of its second quarter results." The stock dropped to $15.37 per share on this news.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
