NEW YORK, Jan. 23, 2013 /PRNewswire/ -- Faruqi & Faruqi, LLP, a leading national securities law firm, is investigating potential securities fraud at magicJack VocalTec Ltd. ("magicJack" or the "Company") (NasdaqGM: CALL).
The investigation focuses on whether the Company and its executives violated federal securities laws by failing to disclose that: (1) magicJack had overstated revenue, earnings and cash flow in its SEC filings; (2) the Company overstated its cash balance by investing its shareholder cash in risky, alternative securities; (3) the Company exaggerated its earnings by increasing its allowance for doubtful accounts and billing adjustments; (4) the Company incorrectly reduced the depreciation expenses for magicJack assets; and (5) while the Company claimed that it was writing down its excess inventory of microchips, it instead wrote down finished products in order to camouflage declining sales momentum.
On January 9, 2013, Copperfield Research published a report revealing that the Company had been consistently overstating its revenue and profitability. Copperfield Research stated that "magicJack has presented its retail investor base with earnings press release and financial tables that are overstated and later altered based on the corresponding SEC filings." On this news, magicJack stock declined $2.01 per share or more than 11%, to close at $15.30 per share on January 9, 2013.
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If you invested in magicJack stock or options between February 28, 2012 and January 8, 2013 and would like to discuss your legal rights, visit www.faruqilaw.com/CALL. You can also contact us by calling Richard Gonnello or Francis McConville toll free at 877-247-4292 or at 212-983-9330 or by sending an e-mail to firstname.lastname@example.org or mailto:email@example.com. Faruqi & Faruqi, LLP also encourages anyone with information regarding magicJack's conduct to contact the firm, including whistleblowers, former employees, shareholders and others.
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FARUQI & FARUQI, LLP
369 Lexington Avenue, 10th Floor
New York, NY 10017
Attn: Richard Gonnello, Esq.
Francis McConville, Esq.
Telephone: (877) 247-4292 or (212) 983-9330
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