NEW YORK, Dec. 9, 2015 /PRNewswire/ -- Robbins Geller Rudman & Dowd LLP ("Robbins Geller") (http://www.rgrdlaw.com/cases/supercom/) today announced that a class action has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of SuperCom Ltd. ("SuperCom") (NASDAQ: SPCB) common stock during the period between June 1, 2015 and November 27, 2015 (the "Class Period").
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, David A. Rosenfeld or Andrew L. Schwartz of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at ="file:///E:/TempXEfirstname.lastname@example.org" rel="nofollow" target="_blank">email@example.com or ="file:///E:/TempXE/ASchwartz@rgrdlaw.com" rel="nofollow" target="_blank">firstname.lastname@example.org. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at http://www.rgrdlaw.com/cases/supercom/. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The complaint charges SuperCom and certain of its officers and directors with violations of the Securities Exchange Act of 1934. SuperCom provides traditional and digital identity solutions to governments and private and public organizations worldwide.
The complaint alleges that during the Class Period, defendants issued false and misleading statements and/or failed to disclose adverse information regarding the Company's business and prospects. Specifically, the complaint alleges that defendants failed to disclose that SuperCom was having difficulty closing certain governmental sales and the revenue associated with those sales would be substantially delayed, that SuperCom's "pipeline" was neither strong nor "broadening," and that, as a result, the Company was not on track to achieve the financial results defendants had led the market to expect during the Class Period. As a result of defendants' false and misleading statements and/or omissions, SuperCom's common stock traded at artificially inflated prices during the Class Period, reaching a high of $13.84 per share.
Then, on November 30, 2015, Supercom announced its preliminary financial results for the third quarter of 2015, acknowledging that it had significantly missed its own revenue target and disclosing that the Company expected third quarter 2015 revenues to come in at $5.5-$6.1 million, less than half of the $13.38 million the Company had led the investment community to expect, and that it would be forced to lower its fiscal year 2015 guidance. The Company stated that its "'financial performance in the third quarter and full-year were impacted by [its] inability to recognize more than $10 million of revenues that were expected this year, mainly due to delays associated with foreign government customers.'" On this news, the price of SuperCom common stock fell more than $3 per share, or 40%, from its close of $7.70 per share on November 27, 2015 to a close of $4.60 per share on November 30, 2015.
Plaintiff seeks to recover damages on behalf of all purchasers of SuperCom common stock during the Class Period (the "Class"). The plaintiff is represented by Robbins Geller, which has extensive experience in prosecuting investor class actions including actions involving financial fraud.
Robbins Geller, with 200 lawyers in ten offices, represents U.S. and international institutional investors in contingency-based securities and corporate litigation. The firm has obtained many of the largest securities class action recoveries in history and was ranked first in both the amount and number of shareholder class action recoveries in ISS's SCAS Top 50 report for 2014. Please visit http://www.rgrdlaw.com/cases/supercom/ for more information.
SOURCE Robbins Geller Rudman & Dowd LLP