According to a press release a law firm is currently investigating potential shareholder claims concerning losses suffered by certain Novatel Wireless, Inc. (NASDAQ: NVTL) investors against Novatel Wireless, Inc. (NASDAQ: NVTL) and certain of its officers and directors, whether the Company or others violated the federal securities laws.

According to the investigation on August 19, 2008, Novatel Wireless, Inc. (or The Company) issued a press release which, among other things, stated that the Audit Committee of the Companys board of directors is conducting an expanded review into the Companys revenue cut-off procedures, internal control and accounting related to certain customer contracts. During the course of the review to date, six transactions have undergone further accounting review, principally as to whether these shipments were recognized as revenue in the appropriate quarter. These shipments involved aggregate revenues of $9.1 million and pre-tax income of $1.1 million. the review has resulted in a preliminary determination to move approximately $3.4 million of revenues from the first quarter to the second quarter of 2008. According to the investigation Novatel Wireless, Inc. further disclosed that: (i) no determination has been made as to whether a restatement of its 2007 financial statements will be required; and (ii) fees and expenses billed through June 30, 2008 by outside professionals in connection with the review are approximately $2.6 million, on a pre-tax basis. Upon disclosure of this news, the Companys share price dropped approximately 25%, so the press release.