NEW YORK, Dec. 13, 2013 /PRNewswire/ -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against Ixia ("Ixia" or the "Company")(NASDAQ: XXIA) and certain of its officers. The class action, filed in United States District Court, Central District of California, and docketed under 2:13-cv-8440, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired IXIA securities between April 29, 2010 and October 24, 2013 both dates inclusive (the "Class Period"). This class action seeks to recover damages against Defendants for alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Ixia securities during the Class Period, you have until January 14, 2014 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@example.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Ixia delivers information technology solutions to a wide variety of organizations, through real-time monitoring, real-world testing, and rapid assessment of networks and systems. The Company's tools are purportedly used to provide "end-to-end visibility" and complete understanding into user behavior, security vulnerabilities, network capacity, application performance, and IT resiliency.
Throughout the Class Period, Defendants made 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: (1) the Company improperly recognized revenues related to its warranty and software maintenance contracts; (2) The Company's Chief Executive Officer "CEO" misstated his academic credentials and employment history; (3) the Company lacked adequate internal and financial controls; and (4) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
On March 19, 2013, Ixia announced that it had filed a Form 12b-25 with the SEC relating to the Company's Annual Report on Form 10-K for the year ended December 31, 2012, and that the Company needed to delay the filing of its Annual Report, "to correct an error related to the manner in which [Ixia] recognizes revenues for its warranty and software maintenance contracts."
On April 3, 2013, Ixia announced that after a further evaluation of the Company's finances, and identifying an additional error in the Company's revenue recognition practices that required correction, the Company's management recommended to the audit committee of the Company that the Company restate previously issued financial statements for the fiscal years ended December 31, 2011 and 2010, and the fiscal quarters ended March 31, 2011, June 30, 2011, September 30, 2011, March 31, 2012, June 30, 2012, and September 30, 2012 (the, "Restated Periods"); and, that the financial statements from the Restated Periods should no longer be relied upon. On this news, the Company's shares declined $1.94 per share, or over 9.5%, to close on April 4, 2013, at $18.37 per share.
On October 24, 2013, the Company disclosed "Vic Alston has resigned as its President and CEO and as a member of its board of directors following a determination by the Ixia audit committee that although he had attended Stanford University, he had misstated his academic credentials, incorrectly claiming to have received a B.S. and a M.S. in Computer Science, and had misstated his age and early employment history." On this news, the Company's shares declined $0.78 per share, or nearly 5%, to close on October 25, 2013, at $14.94 per share.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, 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, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm 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 numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.
Robert S. Willoughby
Pomerantz Grossman Hufford Dahlstrom & Gross LLP
SOURCE Pomerantz Grossman Hufford Dahlstrom & Gross LLP