LAWSUITS NEWS & LEGAL INFORMATION
$95m Settlement Reached in Verifone Securities Fraud Class Action Lawsuit
This is a settlement for the Securities/Stock Fraud lawsuit.
San Jose, CA: A $95 million settlement has been reached in the Verifone securities class action lawsuit. If approved, the settlement will resolve claims concerning a 45 percent drop in Verifone share prices in one day in December 2007.
The drop in share price, the lawsuit claimed, resulted from the San Jose-based maker of electronic-payment systems admitting it had misstated earnings for three consecutive quarters.
The securities fraud class action alleged that former CEO and chairman Douglas Bergeron, and former CFO and executive vice president Barry Zwarenstein, deliberately lied in public about the company's earnings to meet the expectations of a merger with Israel-based Lipman Electronic Engineering. Specifically, the executives had allegedly projected that the merger would spur a sharp increase in earnings. When the increase didn't occur for three successive fiscal quarters, the lawsuit claims the defendants fudged the numbers to make the merger seem successful.
A final settlement hearing is scheduled for February 6, 2014.
Published on Oct-21-13
The drop in share price, the lawsuit claimed, resulted from the San Jose-based maker of electronic-payment systems admitting it had misstated earnings for three consecutive quarters.
The securities fraud class action alleged that former CEO and chairman Douglas Bergeron, and former CFO and executive vice president Barry Zwarenstein, deliberately lied in public about the company's earnings to meet the expectations of a merger with Israel-based Lipman Electronic Engineering. Specifically, the executives had allegedly projected that the merger would spur a sharp increase in earnings. When the increase didn't occur for three successive fiscal quarters, the lawsuit claims the defendants fudged the numbers to make the merger seem successful.
A final settlement hearing is scheduled for February 6, 2014.
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