SAN DIEGO and SAN JOSE, Calif., May 20, 2013 /PRNewswire/ -- Beginning on December 13, 2007, shareholder rights law firms Robbins Arroyo LLP and Faruqi & Faruqi, LLP commenced shareholder derivative lawsuits that assert claims on behalf of VeriFone Systems, Inc. (formerly known as VeriFone Holdings, Inc.) ("VeriFone") (NYSE: PAY). The shareholder plaintiffs who commenced the Action have sold their shares. This press release is being published pursuant to a court order requiring the parties to alert shareholders that the Action will be dismissed and the claims asserted on behalf of VeriFone may be extinguished by operation of the applicable statutes of limitation, unless a shareholder with standing to pursue the claims substitutes as plaintiff.
Any current VeriFone shareholder who has continuously held VeriFone stock since the period of the alleged wrongdoing and wishes to act as plaintiff in the Action must notify the Superior Court of California, County of Santa Clara in writing by August 14, 2013. The Court's address is: Clerk of the Court, Santa Clara Superior Court, 191 North First Street, San Jose, California 95113.
Interested shareholders are urged to contact attorney Darnell R. Donahue of Robbins Arroyo LLP at (800) 350-6003 or via e-mail at firstname.lastname@example.org or attorney Michael Hynes of Faruqi & Faruqi, LLP at (877) 247-4292, or via e-mail at email@example.com as soon as possible. Additional information is provided in the Court-approved Notice and the operative complaint posted on the web sites of Robbins Arroyo LLP and Faruqi & Faruqi, LLP at www.robbinsarroyo.com/notices and www.faruqilaw.com/verifone.
Action Seeks Redress for VeriFone for Alleged Breaches of Fiduciary Duty by the Company's Officers and Directors
The lawsuit asserts claims against members of VeriFone's senior executive group and current and former members of its Board of Directors for alleged breaches of fiduciary duty, waste of corporate assets, and unjust enrichment in connection with their failure to maintain adequate internal and accounting controls at VeriFone, which led to the Company's restatement of its financial statements for the first three fiscal quarters of 2007. The Action also asserts a claim against defendant GTCR Golder Rauner, LLC ("GTCR") for aiding and abetting these breaches of fiduciary duty. Finally, the Action asserts claims against certain of the Individual Defendants and GTCR for violations section 25402 of the California Corporations Code ("Section 25402"), which prohibits the sale of stock while in possession of material, inside information. The Action seeks to recover money damages, including, among other things, amounts paid by the Company to settle or satisfy judgment in the related federal securities fraud class action, In re VeriFone Holdings, Inc. Securities Litigation, Case No. 3:07-cv-06140-MHP (N.D. Cal. filed Dec. 4, 2007), various forms of equitable restitution, and the implementation of corporate governance reforms designed to prevent recurrence of the alleged wrongdoing.
The Claims Asserted on Behalf of VeriFone Will Be Extinguished Unless a VeriFone Shareholder Substitutes as Plaintiff
The shareholder plaintiffs who commenced the lawsuit have sold their stock. The Action will be dismissed if no other VeriFone shareholder is substituted as a plaintiff in the lawsuit. Dismissal of the Action may bar any other action bringing the claims asserted in the Action because the applicable limitation periods may have expired.
VeriFone Shareholders May Contact Robbins Arroyo LLP or Faruqi & Faruqi, LLP for Information
For more information about the case, VeriFone shareholders who meet this description may contact the law firms currently litigating the case. Attorney Darnell R. Donahue of Robbins Arroyo LLP can be reached toll free at (800) 350-6003 or via e-mail at firstname.lastname@example.org. Attorney Michael Hynes of Faruqi & Faruqi, LLP can be reached toll free at (877) 247-4292 or via e-mail at email@example.com.
Robbins Arroyo LLP and Faruqi & Faruqi, LLP are nationally recognized firms with extensive experience in shareholder derivative litigation. For more information about Robbins Arroyo LLP and Faruqi & Faruqi, LLP, please visit the firms' web sites at www.robbinsarroyo.com and www.faruqilaw.com.
Press release link: http://www.robbinsarroyo.com/shareholders-rights-blog/verifone/
SOURCE Robbins Arroyo LLP