23 February 2005 – LAWFUEL – The Law News Network – The law firm of Baron & Budd, P.C. announces that a class action lawsuit was filed in the United States District Court for the District of Arizona on behalf of purchasers of Hypercom Corporation (NYSE: HYC)(“Hypercom” or the “Company”) securities during the period between April 30, 2004 and February 3, 2005, inclusive (the “Class Period”).
Dallas, TX (PRWEB) February 14, 2005 — The law firm of Baron & Budd, P.C. announces that a class action lawsuit was filed in the United States District Court for the District of Arizona on behalf of purchasers of Hypercom Corporation (NYSE: HYC)(“Hypercom” or the “Company”) securities during the period between April 30, 2004 and February 3, 2005, inclusive (the “Class Period”).
The complaint alleges that defendants violated federal securities laws through the issuance of a series of materially false and misleading statements to the market which caused their securities to trade at artificially inflated market prices. On February 4, 2005, the Company issued a press release stating that leases originated during the Class Period by the Company’s UK subsidiary, Hypercom EMEA, Inc., were improperly accounted for as “sales-type leases, rather than operating leases.” This error applied to approximately 3,200 leases, and as a result of this, the Company had to restate its net revenues for the first three quarters of 2004. The Company currently estimates that the net revenue for nine months ending September 30, 2004 will decrease up to $4.0 million, and the operating profit for the same period will decrease by approximately 65 to 75% of the amount of the net revenue reduction.
This news shocked the market. Shares of Hypercom fell $1.00, or 18.32%, to close at $4.46 per share on unusually high trading volume.
If you acquired the securities of Hypercom during the Class Period and meet certain legal requirements, you may, no later than April 11, 2005, move for appointment of lead plaintiff on behalf of the proposed class.
If you are a member of this class and would like to take action in this suit, please visit Baron & Budd online at www.securitiesactions.com. Information on your legal rights can be obtained by contacting the law firm of Baron & Budd, P.C. at 1-800-222-2766.
About Baron & Budd, P.C.
Since 1977, the law firm of Baron & Budd, P.C. has championed the rights of people and communities harmed by corporate misconduct. With over 70 attorneys and offices in Texas, Illinois, Ohio, Louisiana, and New York, Baron & Budd enjoys a national reputation as a leader of the plaintiff’s bar. The firm represents individuals with mesothelioma and other diseases caused by asbestos; leukemia caused by benzene; injuries caused by other toxic substances and unsafe pharmaceuticals; water authorities seeking clean-up costs for drinking water contamination; securities investors defrauded by corporate wrongdoing; and consumers in class actions. For more information on the firm, call 1-800-222-2766 or visit www.baronandbudd.com.