NEW YORK, July 11, 2008 (LAWFUEL) — Pomerantz Haudek Block
Grossman & Gross LLP (www.pomerantzlaw.com) has filed a class action
lawsuit in the United States District Court, Central District of
California, against MRV Communications Inc. (“MRV” or the “Company”)
(Nasdaq:MRVC) and certain officers of the company for violations of
Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. The
class action was filed on behalf of purchasers of the common stock of
the Company between July 24, 2003 and June 5, 2008 (the “Class
Period”).
MRV Communications is a Delaware corporation which maintains its
principal executive office in Chatsworth, California. The company
supplies communications equipment and services to carriers, governments
and enterprise customers worldwide. The complaint alleges that
unbeknownst to investors and contrary to its public representations,
MRV issued stock options that were deliberately backdated in order to
provide improper windfalls to the individual defendants. Moreover,
defendants compounded the fraud by improperly accounting for the
backdated options, thereby, inflating reported results. Finally, the
Company belatedly admitted that such misconduct had taken place.
The complaint specifically alleges that: (1) the Company backdated the
actual grants of its stock options grants and improperly recognized
stock-based compensation expenses related to its stock options grants;
(2) the Company failed to disclose that the stock option grants had not
been accounted for in accordance with Generally Accepted Accounting
Principles (“GAAP”); (3) the Company materially understated tax
expenses, since MRV had improperly deducted such expenses on its tax
returns, thereby reducing the amount of taxes to the extent owed; and
(4) the Company failed to accurately report its financial statements
and will now have to restate its historical financial statements for
the period between 2003 and 2008.
If you purchased or acquired the securities of MRV during the Class
Period, you have until September 8, 2008 to ask the Court to appoint
you as lead plaintiff for the class. Lead plaintiffs must meet certain
legal requirements. Shareholders outside the United States may join the
action. If you wish to review a copy of the Complaint, to discuss this
action, or have any questions, please contact Teresa L. Webb
(tlwebb@pomlaw.com) of the Pomerantz Firm at 888.476.6529 (or
888.4-POMLAW), toll free. Those who inquire by e-mail are encouraged to
include their mailing address and telephone number.
The Pomerantz Firm, which has offices in New York, Chicago, Washington,
D.C., Columbus, Ohio and the San Francisco Bay area, is acknowledged as
one of the premier firms in the areas of corporate, securities, and
antitrust class litigation. Founded by the late Abraham L. Pomerantz,
known as the dean of the class action bar, the Pomerantz Firm pioneered
the field of securities class actions. Today, more than 70 years later,
the Pomerantz Firm continues in the tradition he established, fighting
for the rights of the victims of securities fraud, breaches of
fiduciary duty, and corporate misconduct. The Firm has recovered
numerous multimillion-dollar damages awards on behalf of class members.
