Glancy Binkow & Goldberg LLP, Representing Investors Who Purchased Cadence Design Systems, Inc., Announces Class Action Lawsuit and Seeks to Recover Losses |
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By: Glancy Binkow & Goldberg LLP Posted: 2008-11-05 05:08:52 |
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Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a class action lawsuit in the United States District Court for the Northern District of California on behalf of a class consisting of all persons or entities who purchased or otherwise acquired the securities of Cadence Design Systems, Inc. ("Cadence" or the "Company") (Nasdaq: CDNS), between April 23, 2008 and October 22, 2008, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at http://www.glancylaw.com. The Complaint charges Cadence and certain of the Company's executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and dissemination of materially false and misleading statements concerning the Company's business, operations and prospects, caused Cadence's stock price to become artificially inflated, inflicting damages on investors. Cadence develops electronic design automation software and hardware for electronics companies worldwide. Its products and services are used to design and develop integrated circuits and electronics systems. The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning Cadence's business and operations were materially false and misleading. Specifically, the Complaint alleges that defendants' public statements were false and misleading or failed to disclose or indicate the following: (1) that the Company improperly recognized revenue; (2) that as a result, the Company misstated its financial results during the Class Period; (3) that the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles; (4) that the Company lacked adequate internal and financial controls; and (5) as a result of the above, the Company's financial statements were materially false and misleading at all relevant times. On October 15, 2008 Cadence's stock declined more than 15% after the Company disclosed that Michael Fister had resigned as President, Chief Executive Officer, and director of the company, and that four other Cadence executives had also resigned. Thereafter, on October 22, 2008 Cadence shocked investors when it delayed the announcement of its third-quarter financial results and disclosed that Cadence was reviewing, in conjunction with the Company's independent accountants and legal advisors, the recognition of revenue related to customer contracts signed during the first quarter of 2008. Cadence revealed that the Company initiated the review after preliminarily determining during its regular review of its third quarter results that approximately $24 million of revenue relating to these contracts was recognized during the first quarter of 2008, but should have been recognized ratably over the duration of the contracts commencing in the second quarter of 2008. Cadence further disclosed that, as a result, Cadence expects to restate its financial statements for the first quarters of 2008 and the first half of 2008 to correct the revenue recognition with respect to these contracts. On this news, shares of Cadence declined $1.10 per share, more than 25%, to close on October 23, 2008 at $3.22 per share, on unusually heavy volume. Plaintiff seeks to recover damages on behalf of class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud. If you are a member of the class described above, you may move the Court, no later than December 29, 2008, to serve as lead plaintiff, however, you must meet certain legal requirements. 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 Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 |
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