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COUGHLIN STOIA GELLER RUDMAN & ROBBINS LLP FILES CLASS
ACTION SUIT AGAINST NOVATEL WIRELESS, INC.
September 18, 2008 – Coughlin Stoia Geller Rudman & Robbins LLP (“Coughlin Stoia”) (http://www.csgrr.com/cases/novatelinc/) today announced that a class action has been commenced in the United States District Court for the Southern District of California on behalf of purchasers of Novatel Wireless, Inc. (“Novatel”) (NASDAQ:NVTL) common stock during the period between February 5, 2007 and August 19, 2008 (the “Class Period”).
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from September 16, 2008. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff’s counsel, Darren Robbins of Coughlin Stoia at 800/449-4900 or 619/231-1058, or via e-mail at djr@csgrr.com. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.csgrr.com/cases/novatelinc/. Any member of the putative 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.
The complaint charges Novatel and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Novatel is a provider of wireless broadband access solutions for the worldwide mobile communications market.
The complaint alleges that during the Class Period, defendants misrepresented Novatel’s financial performance. Specifically, defendants failed to disclose that the Company was recognizing revenue in violation of its own revenue cut-off procedures and Generally Accepted Accounting Principles, thus rendering the Company’s publicly reported financial results materially false. The defendants also repeatedly misrepresented the status of an internal accounting review by the Company’s Audit Committee. On May 13, 2008, defendants represented that the Company was unable to file its Form 10-Q with the SEC on time because of a review of a single customer contract which they represented was “substantially completed today.” Over three months later, on August 19, 2008, defendants admitted that the review was still ongoing, that it involved at least six transactions representing $9.1 million in revenue, and that when the review was completed a decision would be made as to whether a restatement would be required. As a result of these disclosures, Novatel’s stock price dropped from $8.40 to $6.29 the next day, a 25% decline.
Plaintiff seeks to recover damages on behalf of all purchasers of Novatel common stock during the Class Period (the “Class”). The plaintiff is represented by Coughlin Stoia, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Coughlin Stoia, a 190-lawyer firm with offices in San Diego, San Francisco, Los Angeles, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Coughlin Stoia Web site (http://www.csgrr.com) has more information about the firm.
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