Comverse Technology Inc (NASDAQ: CMVT) Investor Securities Class Action Lawsuit 04/19/2006

If you purchased shares of Comverse Technology Inc (NASDAQ: CMVT), you might have certain options and should contact the Shareholders Foundation, Inc.

To have your information reviewed for options and to recieve notifications about this case, please use this form. You may also send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.
Company Name(s): 
Comverse Technology
Case Name: 
Comverse Technology Shareholder Class Action Lawsuit 04/19/2006
Case Status: 
Settlement Approved
Affected Securities
NASDAQ: CMVT
Lawsuit Overview
Type of Lawsuit: 
Shareholder Class Action
Date Filed: 
04/19/2006
Class Period Begin: 
04/30/2001
Class Period End: 
01/19/2008
Court of Filing: 
U.S. District Court for the Eastern District of New York
Deadline To File for Lead: 
06/19/2006
Date Settled: 
06/24/2010
Settlement Amount: 
$225,000,000
Deadline to Participate in Settlement: 
08/05/2010
Summary: 

November 16, 2011 - The court ordered the authorization of the distribution of the net settlement fund.

June 24, 2010 - The court approved the settlement, entered the orders approving the plan of allocation, the motion for attorneys’ fees and expenses, and dismissed the action with prejudice.

June 21, 2010 - Parties filed an amendment to the stipulation of settlement.

April 6, 2010 - The court preliminarily approved the settlement.

December 18, 2009 - Parties filed a stipulation of settlement.

March 10, 2009 - The lead plaintiff filed a corrected third amended consolidated complaint.

February 27, 2009 - The lead plaintiff filed a third amended consolidated complaint.

July 18, 2008 - The court granted the individual defendant's motion to dismiss.

June 2, 2008 - An individual defendant filed a motion to dismiss in part.

April 10. 2008 - The lead plaintiff filed a revised second amended consolidated complaint.

March 5, 2008 - The lead plaintiff filed a second amended consolidated complaint on behalf of investors who purchased Comverse Technology Inc (NASDAQ: CMVT) common shares between April 30, 2001 through November 14, 2006. The lead plaintiffs alleges that the defendants violated the Securities Act of 1933 and the Securities Exchange Act of 1934 by issuing false and misleading statements between April 30, 2001 through November 14, 2006.

February 20, 2008 - The court granted in part and denied in part the defendants motions to dismiss. Counts IV and V are dismissed as against all
defendants and Count II is dismissed as against three individual defendants and counts I and III against same individual defendants is denied. The lead plaintiff was granted 10 days leave to amend the complaint.

August 21, 2007 - An additional defendant filed a motion to dismiss.

July 30, 2007 - The defendants filed motions to dismiss.

March 23, 2007 - The lead plaintiff filed an amended consolidated complaint.

March 2, 2007 - A new lead plaintiff and lead counsel were appointed.

September 27, 2006 - The lead plaintiff and lead counsel were appointed.

August 16, 2006 - All cases were consolidated.

June 19, 2006 - Lead plaintiff motions were filed.

June 12, 2006 - An additional investor filed a complaint in the U.S. District Court for the Southern District of New York on behalf of investors who purchased Comverse Technology Inc (NASDAQ: CMVT) common shares between April 30, 2001 through April 16, 2006.

June 1, 2006 - An additional investor filed a complaint in the U.S. District Court for the Southern District of New York on behalf of investors who purchased Comverse Technology Inc (NASDAQ: CMVT) common shares between April 30, 2001 through April 16, 2006.

May 4, 2006 - Another investor filed a complaint in the U.S. District Court for the Southern District of New York on behalf of investors who purchased Comverse Technology Inc (NASDAQ: CMVT) common shares between December 14, 2004 and March 13, 2006.

April 25, 2006 - Another investor filed a complaint in the U.S. District Court for the Southern District of New York on behalf of investors who purchased Comverse Technology Inc (NASDAQ: CMVT) common shares between April 30, 2001 through April 16, 2006.

April 19, 2006 - An investor in shares of Comverse Technology Inc (NASDAQ: CMVT) filed a lawsuit in the U.S. District Court for the Eastern District of New York against Comverse Technology Inc over alleged violations of Federal Securities Laws in connection with certain allegedly false and misleading statements made between April 30, 2001 through April 16, 2006.

Specifically the complaint alleges, Comverse Technology Inc and certain of its officers and directors, failed to disclose information regarding the true timing of stock option grants made to key executives. This manipulation of the grant dates permitted the individual defendants to enrich themselves, while artificially inflating net income, operating income and retained earnings. Had the timing not been manipulated, and properly accounted for, these financial measures would have been materially lower.

The complaint further alleges that on or around March 14, 2006, Comverse Technology Inc announced the creation of a special committee of its board of directors composed of outside directors to review matters relating to Comverse Technology Inc’s stock option grants, the accuracy of the stated dates of option grants and whether all proper corporate procedures were followed. Then, on April 17, 2006, Comverse Technology Inc revealed that it would restate its financial statements for the first three quarters of fiscal 2006, for the 2001-05 fiscal years, and possibly previous periods. The adjustments are expected to be material. On this news, Comverse Technology Inc stock (NASDAQ: CMVT) dropped from $29.15 on March 13, 2006 to $23.31 on April 17, 2006, a decline of over 20%.