PR Newswire
NEW YORK, Aug. 10, 2023
NEW YORK, Aug. 10, 2023 /PRNewswire/ -- Pomerantz LLP announces that a class action lawsuit has been filed against DZS Inc. ("DZS" or the "Company") (NASDAQ: DZSI), and certain officers. The class action, filed in the United States District Court for the Eastern District of Texas, Sherman Division, and docketed under 23-cv-00603, is on behalf of a class consisting of all persons and entities other than Defendants that purchased or otherwise acquired publicly traded DZS securities between March 10, 2023 and May 31, 2023, inclusive (the "Class Period"). Plaintiff seeks to recover compensable damages caused by Defendants' violations of the federal securities laws under the Securities Exchange Act of 1934 ("Exchange Act").
If you are a shareholder who purchased or otherwise acquired DZS securities during the Class Period, you have until August 14, 2023 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at [email protected] or 888.476.6529 (or 888.4-POMLAW), toll-free, Ext. 7980. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and the number of shares purchased.
[Click here for information about joining the class action]
DZS purports to be a "global provider of access and optical networking infrastructure and cloud software solutions that enable the emerging hyper-connected, hyper-broadband world and broadband experiences. The Company provides a wide array of reliable, cost-effective networking technologies and software to a diverse customer base."
The complaint alleges that throughout the Class Period, Defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) DZS' financial statements from March 31, 2023 to the present included certain errors; (ii) as a result, DZS would need to restate its previously filed quarterly financial statement for the period ending March 31, 2023; (iii) the Company had ongoing undisclosed issues with its internal controls over financial reporting; and (iv) as a result, Defendants' statements about the Company's business, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.
On June 1, 2023, DZS announced that it would restate its financial results for the Company's first fiscal quarter ended March 31, 2023, noting that it improperly recognized approximately $15 million of revenue during the quarter. DZS further disclosed that "[t]he restatement relates to timing of revenue recognition with respect to two customer projects" and "[t]he most significant of the two revenue restatements is with a long standing, highly valued customer." Moreover, the Company withdrew its previously issued guidance for its second quarter of 2023.
On this news, DZS's stock price plummeted by $2.17 per share, or 36%, to close at $3.82 on June 1, 2023, on extremely high trading volume. The next day, DZS's stock price declined another $0.36 per share, or 9.42%, to close at $3.46 per share on June 2, 2023.
Pomerantz LLP, with offices in New York, Chicago, Los Angeles, London, Paris, and Tel Aviv, 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, Pomerantz pioneered the field of securities class actions. Today, more than 85 years later, Pomerantz 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 billions of dollars in damages awards on behalf of class members. See www.pomlaw.com.
CONTACT:
Robert S. Willoughby
Pomerantz LLP
[email protected]
888-476-6529 ext. 7980
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SOURCE Pomerantz LLP
