SAN DIEGO and OAKBROOK TERRACE, Ill., July 30, 2015 /PRNewswire/ -- Shareholder rights law firm Robbins Arroyo LLP announces that a securities fraud class action complaint was filed in the U.S. District Court for the Northern District of Illinois Eastern Division. The complaint alleges that officers and directors of VASCO Data Security International, Inc. (NASDAQCM: VDSI) violated the Securities Exchange Act of 1934 between February 18, 2014 and July 21, 2015, by making materially false and misleading statements about VASCO's business, operational, and compliance policies. VASCO, together with its subsidiaries, designs, develops, markets, and supports hardware and software security systems that manage and secure access to information assets worldwide.
View this information on the law firm's Shareholder Rights Blog:
VASCO Investigates its Distributor
According to the complaint, VASCO officials failed to disclose that the company's products were illegally sold to parties in Iran in violation of federal laws prohibiting such sales. The complaint further alleged that the company lacked adequate internal controls, and as a result, VASCO deceived the investing public by artificially inflating and maintaining the price of its securities.
On July 21, 2015, VASCO filed a Form 8-K with the U.S. Securities and Exchange Commission announcing that some of its products sold by a VASCO European subsidiary to a third-party distributor may have been resold by the distributor to parties in Iran, including potential parties subject to U.S. economic sanctions. Additionally, the 8-K stated that the Audit Committee of the company's board of directors initiated an internal investigation with the assistance of outside counsel. The 8-K further stated that VASCO stopped all shipments to the distributor pending the outcome of the investigation, which will include a review and possible recommendations to improve VASCO's compliance procedures.
As a precautionary matter, the company submitted concurrent initial notices of voluntary disclosure on June 25, 2015 with each of the U.S. Department of Treasury, Office of Foreign Assets Control, and the U.S. Department of Commerce, Bureau of Industry and Security. On this news, VASCO stock fell $0.86 per share, or over 3.2%, to close at $25.83 on July 22, 2015.
Then, on July 29, VASCO stock declined over 20% from its prior day close of $26.30 to close at $20.45 after reporting earnings and providing full-year guidance below consensus estimates.
VASCO Shareholders Have Legal Options
Concerned shareholders who would like more information about their rights and potential remedies can contact attorney Darnell R. Donahue at (800) 350-6003, DDonahue@robbinsarroyo.com, or via the shareholder information form on the firm's website.
Robbins Arroyo LLP is a nationally recognized leader in shareholder rights law. The firm represents individual and institutional investors in shareholder derivative and securities class action lawsuits, and has helped its clients realize more than $1 billion of value for themselves and the companies in which they have invested.
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SOURCE Robbins Arroyo LLP