Case Page

 

Case Status:    DISMISSED    
On or around 04/02/2014 (Court's order of dismissal)

Filing Date: January 18, 2013

According to the law firm press release, 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.

On March 12, 2013, the plaintiffs filed an amended complaint.

On April 26, 2013, the Court issued an Order appointing lead plaintiffs and approving the selection of lead counsel.

On July 22, the lead plaintiffs filed a Second Amended Complaint.

On January 29, 2014, the Court's issued an Opinion granting the Defendants' motion to dismiss.

COMPANY INFORMATION:

Sector: Technology
Industry: Computer Services
Headquarters: United States

SECURITIES INFORMATION:

Ticker Symbol: CALL
Company Market: NASDAQ
Market Status: Public (Listed)

About the Company & Securities Data


"Company" information provides the industry and sector classification and headquarters state for the primary company-defendant in the litigation. In general, "Securities" information provides the ticker symbol, market, and market status for the underlying securities at issue in the litigation.

In most cases, the primary company-defendant actually issued the securities that are the subject of the litigation, and the securities information and company information relate to the same entity. In a small subset of cases, however, the primary company-defendant is not the issuer (for example, cases against third party brokers/dealers), and the securities information and company information do not relate to the same entity.
COURT: S.D. New York
DOCKET #: 13-CV-00448
JUDGE: Hon. Sweet
DATE FILED: 01/18/2013
CLASS PERIOD START: 02/28/2012
CLASS PERIOD END: 01/08/2013
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
No Document Title Filing Date
COURT: S.D. New York
DOCKET #: 13-CV-00448
JUDGE: Hon. Sweet
DATE FILED: 07/22/2013
CLASS PERIOD START: 02/28/2012
CLASS PERIOD END: 01/08/2013
PLAINTIFF FIRMS NAMED IN COMPLAINT:
  1. Bronstein, Gewirtz & Grossman, LLC (New York)
    60 East 42nd Street - Suite 4600, Bronstein, Gewirtz & Grossman, LLC (New York), NY 10165
    212.697.6484 212.697.7296 · info@bgandg.com
  2. Pomerantz LLP (New York)
    600 Third Avenue, Pomerantz LLP (New York), NY 10016
    212.661.1100 212.661.8665 · info@pomerantzlaw.com/
  3. The Rosen Law Firm P.A. (New York)
    275 Madison Avenue, 34th Floor, The Rosen Law Firm P.A. (New York), NY 10016
    (212) 686-1060 (212) 202-3827 ·
No Document Title Filing Date