Stockholders v Comtech Telecommunications Corp.
Stockholders File Lawsuit Against Comtech Telecommunications Corp.
According to a press release dated July 14, 2009, the complaint charges Comtech and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The Company engages in the design, development, production, and marketing of products, systems, and services for advanced communications solutions in the United States and internationally.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Companys business prospects. Specifically, defendants misrepresented and/or failed to disclose the following adverse facts: (i) that the Company was experiencing negative trends in its commercial satellite earth station and encoder bookings, as well as commercial RF Amplifier bookings; (ii) that the Companys sales from its Mobile Data Communications division were weakening outside of its one order with the U.S. Armys Movement Tracking System (MTS); (iii) that the Company was experiencing difficulty integrating the Radyne acquisition and was not generating the synergies expected from the acquisition; (iv) that the Companys costs were rising in excess of internal forecasts reducing profit margins; and (v) as a result of the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its prospects, and its revenue and earnings projections.
Then, on March 9, 2009, Comtech issued a press release announcing its financial results for the fiscal second quarter of 2009, the period ended January 31, 2009. In response to the Companys drastic reduction in its revenue and earnings guidance for 2009, the price of Comtech common stock fell $12.97 per share, or approximately 37%, to close at $22.48 per share, on extremely heavy trading volume.
Plaintiff seeks to recover damages on behalf of all purchasers of Comtech 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.
If you bought Comtech Telecommunications Corp. securities and would like to obtain information about the Comtech Telecommunications Corp. lawsuit, then you are invited to call Kahn Swick Foti, LLC toll free at (866) 467-1400 to speak with an attorney or visit www.ksfcounsel.com.
