Investors Sue InfoSonics Corporation
June 15 2006 - 2:47PM
PR Newswire (US)
PHILADELPHIA, June 15 /PRNewswire/ -- On behalf of investors in
InfoSonics Corporation ("InfoSonics") (AMEX:IFO), Berger &
Montague, P.C. filed suit on Tuesday. The suit is pending in the
U.S. District Court for the Southern District of California. The
suit seeks recovery on behalf of investors who purchased the
publicly traded securities of InfoSonics during the period May 9,
2006 - June 9, 2006 (the "Class Period"). According to the
Complaint, InfoSonics and its top officers defrauded persons
investing in InfoSonics securities, violating the federal
securities laws. On May 8, 2006, defendants reported inflated
results for the quarter ended March 2006, by improperly accounting
for warrants issued in connection with a January 2006 private
placement. By means of this improper accounting, defendants falsely
reported net income of $1.738 million for the March 2006 quarter.
On Monday of this week, InfoSonics belatedly admitted that the
March 2006 reported results were false. InfoSonics disclosed that
it would need to restate the March 2006 quarter results. As
restated, net income for the quarter would be $1.173 million, a
decrease of 32.5%. In response to this disclosure, InfoSonics stock
plunged on very high volume. The Complaint further alleges that
defendants engaged in massive insider trading between May 11 and
June 7, 2006. Indeed, some of this insider trading continued even
after InfoSonics determined on June 5, 2006 that it would need to
restate the March 2006 quarter results. If you purchased InfoSonics
securities during the Class Period of May 9, 2006 - June 9, 2006,
you may, no later than August 14, 2006, move to be appointed as a
Lead Plaintiff. A Lead Plaintiff is a representative party who acts
on behalf of other class members in directing the litigation. The
Private Securities Litigation Reform Act of 1995 directs Courts to
assume that the class member(s) with the "largest financial
interest" in the outcome of the case will best serve the class in
this capacity. Courts have discretion in determining which class
member(s) have the "largest financial interest," and have appointed
Lead Plaintiffs with substantial losses in both absolute terms and
as a percentage of their net worth. If you have sustained
substantial losses in InfoSonics securities during the Class
Period, please contact Berger & Montague, P.C. at for a more
thorough explanation of the Lead Plaintiff selection process and
the litigation. The law firm of Berger & Montague, P.C.
consists of over 60 attorneys, all of whom represent plaintiffs in
complex litigation. The Berger firm has extensive experience
representing institutions and other investor plaintiffs in class
action securities litigation, playing lead roles in major cases
over the past 30 years that have resulted in recoveries of billions
of dollars to investors. The firm has represented investors as lead
counsel in such leading securities actions as Rite Aid, Sotheby's,
Waste Management, Sunbeam, Boston Chicken and IKON Office
Solutions. The standing of Berger & Montague, P.C. in
successfully conducting major securities and antitrust litigation
has been recognized by numerous courts. For example: "In short, it
would be hard to equal the skill class counsel demonstrated here."
In Re: Rite Aid Corporation Securities Litigation, MDL Docket No.
1360, Master File No. 99-1349 (E. D. Pa.) ($334 million
settlement). "Class counsel did a remarkable job in representing
the class interests." In Re: IKON Office Solutions Securities
Litigation, Civil Action No. 98-4286 (E. D. Pa.) (partial
settlement for $111 million). ". . . [Y]ou have acted the way
lawyers at their best ought to act. And I have had a lot of cases .
. . In 15 years now as a judge and I cannot recall a significant
case where I felt people were better represented than they are here
. . . I would say this has been the best representation that I have
seen." In Re: Waste Management, Inc. Securities Litigation, Civil
Action No. 97-C7709 (N.D. Ill.) (settled for $220 million). If you
purchased InfoSonics securities during the Class Period, or have
any questions concerning this notice or your rights with respect to
this matter, please contact: Todd S. Collins, Esquire Kimberly A.
Walker, Investor Relations Manager Berger & Montague, P.C. 1622
Locust Street Philadelphia, PA 19103 Phone: 888-891-2289 or
215-875-3000 DATASOURCE: Berger & Montague, P.C. CONTACT: Todd
S. Collins, Esquire or Kimberly A. Walker, Investor Relations
Manager, both of Berger & Montague, P.C., +1-888-891-2289 or
+1-215-875-3000 Web site: http://www.bergermontague.com/
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