Shareholder Class Action Filed Against Immersion Corporation by the Law Firm of Barroway Topaz Kessler Meltzer & Check, LLP
RADNOR, Pa., Sept. 18 /PRNewswire/ — The following statement was issued today by the law firm of Barroway Topaz Kessler Meltzer & Check, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Northern District of California on behalf of purchasers of securities of Immersion Corporation (Nasdaq: IMMR) (“Immersion” or the “Company”) between May 3, 2007 and June 30, 2009 inclusive (the “Class Period”).
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Barroway Topaz Kessler Meltzer & Check, LLP (Darren J. Check, Esq. or David M. Promisloff, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at email@example.com.
The Complaint charges Immersion and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Immersion develops, manufactures, licenses, and supports a range of hardware and software technologies, and products that enhance digital devices with touch interaction. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that Immersion’s revenue recognition procedures with respect to its Medical line of business were not in accordance with Generally Accepted Accounting Principles (“GAAP”); (2) that Immersion’s reported revenue and earnings were overstated because of the Company’s accounting irregularities; (3) that, as a result of the foregoing, Immersion’s financial statements were materially false and misleading at all relevant times; and (4) that, as a result of the foregoing, Immersion’s statements about its financial well-being were lacking in any reasonable basis when made.
As a result of defendants’ false and misleading statements, Immersion stock traded at artificially inflated prices during the Class Period, reaching a high of $20.50 per share on July 13, 2007. Subsequently, in February 2008, Immersion announced a correction of its income tax expense for its interim 2007 results, causing the Company’s stock to drop somewhat, but the stock continued to trade at artificially inflated levels due to the Company’s reported profitability. Then, on July 1, 2009, before the market opened, the Company issued a press release announcing that the Audit Committee of the Company’s Board was conducting an internal investigation into certain previous revenue transactions in its Medical line of business. On this news, Immersion’s stock dropped over 23% from a close of $4.94 per share on June 30, 2009 to a close of $3.80 per share on July 1, 2009.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Barroway Topaz Kessler Meltzer & Check which prosecutes class actions in both state and federal courts throughout the country. Barroway Topaz Kessler Meltzer & Check is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf of institutional and individual investors from the United States and around the world.
For more information about Barroway Topaz Kessler Meltzer & Check, or for additional information about participating in this action, please visit www.btkmc.com.
If you are a member of the class described above, you may, not later than November 2, 2009, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
CONTACT: Barroway Topaz Kessler Meltzer & Check, LLP Darren J. Check, Esq. David M. Promisloff, Esq. 280 King of Prussia Road Radnor, PA 19087 1-888-299-7706 (toll free) or 1-610-667-7706 Or by e-mail at firstname.lastname@example.org
SOURCE Barroway Topaz Kessler Meltzer & Check, LLP