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Investigation Concerning Losses Suffered by Novatel Wireless, Inc. Investors Announced |
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Written by PrimeNewsWire
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Friday, 22 August 2008 |
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Denver, Colorado - The law firm of Dyer & Berens LLP announced today that it has initiated an investigation concerning losses suffered by certain Novatel Wireless, Inc. ("Novatel" or the "Company") (Nasdaq:NVTL) investors and whether the Company or others violated the federal securities laws.
On August 19, 2008, Novatel issued a press release which, among other things, stated that "the Audit Committee of the Company's board of directors is conducting an expanded review into the Company's revenue cut-off procedures, internal control and accounting related to certain customer contracts. During the course of the review to date, six transactions have undergone further accounting review, principally as to whether these shipments were recognized as revenue in the appropriate quarter. These shipments involved aggregate revenues of $9.1 million and pre-tax income of $1.1 million. . . . the review has resulted in a preliminary determination to move approximately $3.4 million of revenues from the first quarter to the second quarter of 2008." The Company further disclosed that: (i) no determination has been made as to whether a restatement of its 2007 financial statements will be required; and (ii) fees and expenses billed through June 30, 2008 by outside professionals in connection with the review are approximately $2.6 million, on a pre-tax basis. Upon disclosure of this news, the Company's share price dropped approximately 25%.
If you have information relevant to the investigation, or if you believe you were harmed by the conduct described above, you may contact Jeffrey A. Berens, Esq. at (888) 300-3362 or via email at
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