DENVER, Aug. 22, 2008 (LAWFUEL) — The law firm of Dyer & Berens
LLP (www.DyerBerens.com) announced today that it has initiated an
investigation concerning losses suffered by certain Novatel Wireless,
Inc. (“Novatel” or the “Company”) (Nasdaq:NVTL) investors and whether
the Company or others violated the federal securities laws.
On August 19, 2008, Novatel issued a press release which, among other
things, stated that “the Audit Committee of the Company’s board of
directors is conducting an expanded review into the Company’s revenue
cut-off procedures, internal control and accounting related to certain
customer contracts. During the course of the review to date, six
transactions have undergone further accounting review, principally as
to whether these shipments were recognized as revenue in the
appropriate quarter. These shipments involved aggregate revenues of
$9.1 million and pre-tax income of $1.1 million. . . . the review has
resulted in a preliminary determination to move approximately $3.4
million of revenues from the first quarter to the second quarter of
2008.” The Company further disclosed that: (i) no determination has
been made as to whether a restatement of its 2007 financial statements
will be required; and (ii) fees and expenses billed through June 30,
2008 by outside professionals in connection with the review are
approximately $2.6 million, on a pre-tax basis. Upon disclosure of this
news, the Company’s share price dropped approximately 25%.
If you have information relevant to the investigation, or if you
believe you were harmed by the conduct described above, you may contact
Jeffrey A. Berens, Esq. at (888) 300-3362 or via email at
jeff@dyerberens.com.
