Smith Micro Software, Inc. Long Term Investors File Lawsuits Against Directors
July 31, 2012 (Update) -- Case dismissed.
San Diego, Oct. 21, 2011 (Shareholders Foundation) -- Current investors in NASDAQ: SMSI shares filed lawsuits against directors of Smith Micro Software over alleged breaches of Fiduciary Duties.
According to the complaint the plaintiff alleges that directors of Smith Micro Software breached their fiduciary duties owed to SMSI stockholders. The lawsuit by current long term investors follows an earlier lawsuit filed by investors in Smith Micro Software, Inc, who purchased their shares only between November 3, 2010 and May 4, 2011. That lawsuit alleges that Smith Micro Software violated Federal Securities Laws by issuing false and misleading statements regarding the Company's business prospects and financial results.
On January 11, 2011, Smith Micro Software, Inc. provided its 2011 Revenue Guidance. Then on February 8, 2011 Smith Micro Software, Inc. (NASDAQ: SMSI) announced that it has suspended its full-year 2011 revenue guidance. Subsequent to providing 2011 revenue guidance on January 11, 2011, Smith Micro Software, Inc said it has become aware that orders in the first quarter for its core connection manager product, primarily from a key customer, will fall below expected levels. Smith Micro Software, Inc said it now expects first quarter 2011 revenues to be in the range of $15-20 million. Shares of Smith Micro Software, Inc. (NASDAQ: SMSI) fell from $13.08 per share on Feb 8th to as low as $7.99 during Feb 9th, a decline of almost 40%.
Then on May 4, 2011, Smith Micro Software announced its quarterly financial results for the first quarter in 2011 and also its second quarter 2011 revenue guidance, which is below analysts’ estimates.
SMSI stock fell $7.68 on May 2nd to $5.66 on May 5, 2011 and continued to decline to $3.54 on August 1, 2011.
Then on August 2, 2011 Smith Micro Software, Inc. (NASDAQ: SMSI) reported its financial results for its second quarter ended June 30, 2011 and its financial guidance for the third fiscal quarter in 2011.
NASDAQ SMSI stocks fell from $3.33 on August 2, 2011 to $2.19 on August 5, 2011 and continued to decline to recently $1.25 per share, less than 10% of its value in January 2011.