NEW YORK, Nov. 28, 2007 (PRIME NEWSWIRE) — Labaton Sucharow LLP filed a class action lawsuit on November 28, 2007 in the United States District Court for the Southern District of New York, on behalf of persons who purchased or otherwise acquired the securities of Ericsson LM Telephone Co. (“Ericsson” or the “Company”) (Nasdaq:ERIC) and
(Stockholm:ERICA) (Stockholm:ERICB) between February 2, 2007 and November 20, 2007, inclusive, (the “Class Period”). The lawsuit was filed against Ericsson, its CEO Carl-Henrik Svanberg, and its former CFO Karl-Henrik Sundstrom (“Defendants”).
If you are a member of this class you can view a copy of the complaint online at http://www.labaton.com/en/cases/upload/Ericsson-Complaint.pdf
The complaint alleges Ericsson and certain of its officers and directors violated the Securities Exchange Act of 1934. Ericsson is a Sweden-based company that offers a portfolio of telecommunication and data communication systems and services covering a range of technologies.
According to the complaint, during the Class Period, Defendants issued materially false and misleading statements regarding the Company’s business and financial results. The complaint alleges that Defendants knew or recklessly disregarded that: (i) the Company was experiencing declining sales in its networks due to lower sales of expansions and upgrades of mobile networks; (ii) sales in Western Europe were declining due to operator consolidation in several markets; and (iii) as a result, Defendants lacked a reasonable basis for their positive statements about the Company’s business, such as the repeated reassurances of continued strong earnings growth in 2007.
On October 16, 2007, before the market opened, Ericsson issued a release entitled “Lower than expected results for Ericsson in third quarter 2007.” That same day, after these results were issued, Ericsson’s stock collapsed to close at $31.33 per share, a decline of 24%, on volume of 42.7 million shares.
On November 20, 2007, Ericsson finally acknowledged that it had experienced, and would continue to experience, lower customer demand across product lines and regions. The Company also again lowered sales projections for the rest of 2007 and 2008. The Company’s shares declined an additional 12% after this disclosure.
Plaintiff is represented by the law firm of Labaton Sucharow LLP.
Labaton Sucharow is one of the country’s premier national law firms that represent individual and institutional investors in class action, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts. If you would like to consider serving as lead plaintiff or have any questions about the lawsuit, please contact one of our representatives or Christopher Keller, Esq. at 800-321-0476.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/caList your legal jobs on the LawFuel Network