DENVER, Oct. 30, 2008 (LAWFUEL) — Dyer & Berens LLP
(www.DyerBerens.com) today announced that a class action has been
commenced in the United States District Court for the Northern District
of California on behalf of all purchasers of Cadence Design Systems,
Inc. (“Cadence” or the “Company”) (Nasdaq:CDNS) common stock during the
period between April 23, 2008 and October 22, 2008 (the “Class
Period”). The case is entitled Hu v. Cadence Design Systems, Inc.,
Michael J. Fister, William Porter and Kevin S. Palatnik. The complaint
charges Cadence and certain of its current and former officers with
violations of the Securities Exchange Act of 1934.
If you wish to serve as a lead plaintiff, you must move the Court no
later than 60 days from today. If you wish to discuss this action or
have any questions concerning this notice or your rights or interests,
please contact plaintiff’s counsel, Jeffrey A. Berens, Esq. at (888)
300-3362, (303) 861-1764, or via email at jeff@dyerberens.com. Any
member of the putative class may move the Court to serve as a lead
plaintiff through counsel of their choice, or may choose to do nothing
and remain an absent class member.
Cadence develops electronic design automation, or EDA, software and
hardware. The complaint alleges that, during the Class Period,
defendants misrepresented Cadence’s financial performance and
prospects, overstated its revenues, and caused it to file false and
misleading financial statements with the SEC. More specifically,
defendants allegedly caused Cadence to improperly report approximately
$24 million in revenue in the first quarter of 2008 and in the six
months ended June 28, 2008 that will not be earned until the later
quarters and, therefore, should be properly recognized ratably over the
duration of the customer contracts.
On October 15, 2008, the Company announced the departures of its Chief
Executive Officer and four other senior executives. In response to this
surprise announcement, the price of Cadence common stock dropped
approximately 15%. Merely a week later, on October 22, 2008, defendants
stunned investors by acknowledging that the Company was reviewing the
recognition of revenue related to customer contracts signed in the
first quarter of 2008 and that it expected to restate its financial
statements not only for that quarter, but also the first half of 2008.
As a result of these disclosures, Cadence’s stock price dropped another
25%, as the artificial inflation caused by defendants’ false and
misleading statements came out of the stock price.
Plaintiff seeks to recover damages on behalf of all purchasers of
Cadence common stock during the Class Period. The plaintiff is
represented by Dyer & Berens LLP, which has expertise in prosecuting
investor class actions involving financial fraud. The firm’s extensive
experience in securities litigation, particularly in cases brought
under the Private Securities Litigation Reform Act, has contributed to
the recovery of hundreds of millions of dollars for aggrieved
investors. For more information about the firm, please go to
www.DyerBerens.com.
