Law Offices of Howard G. Smith, Representing Investors of Immersion Corporation, Announces Class Action Lawsuit
BENSALEM, Pa.-(Business Wire)-September 26, 2009 - Law Offices of Howard G. Smith, representing investors of Immersion Corporation (“Immersion” or the “Company”) (Nasdaq:IMMR), has filed a class action lawsuit in United States District Court on behalf of a class (the “Class”) consisting of all persons or entities who purchased the securities of Immersion between May 3, 2007 and June 30, 2009, inclusive (the “Class Period”). The class action lawsuit was filed in the United States District Court for the Northern District of California.
The Complaint charges Immersion and certain of the Company’s current and former executive officers with violations of federal securities laws. Immersion Corp. develops, manufactures, licenses and supports a range of hardware and software technologies and products that enhance digital devices with touch interaction. The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded and failed to disclose or indicate the following: (1) that the Company overstated its income tax expense; (2) that the Company improperly recognized revenue; (3) as a result of the foregoing, that the Company’s revenue, accounts receivable and financial results were overstated during the Class Period; (4) that the Company’s financial results were not prepared in accordance with Generally Accepted Accounting Principles (“GAAP”); (5) that the Company lacked adequate internal and financial controls; and (6), as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.
On July 1, 2009, Immersion announced that the Audit Committee of the Board of Directors was conducting an internal investigation into certain previous revenue transactions in its Medical line of business, and as a result of this investigation Immersion’s previously reported financial information could be materially impacted. This news caused shares of Immersion to decline $1.14 per share, or more than 23% from the previous day’s closing price, to close on July 1, 2009, at $3.80 per share, on unusually heavy trading volume.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased Immersion Corp. securities between May 3, 2007 and June 30, 2009, you have certain rights, and have until November 2, 2009, to move for lead plaintiff status. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020, by telephone at (215)638-4847, Toll-Free at (888)638-4847, by email to howardsmith@howardsmithlaw.com or visit our website at http://www.howardsmithlaw.com.
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