San Diego, Aug 31, 2011 (Shareholders Foundation) -- Smith Micro Software was hit by a lawsuit on behalf of purchasers of Smith Micro Software, Inc. (NASDAQ:SMSI) common stock during the period between November 3, 2010 and May 4, 2011. But also an investigation on behalf of former and current employees of Smith Micro Software concerning potential Breaches of Fiduciary Duty was announced.

Smith Micro Software has been accused of securities laws violations and according to an investigation by a law firm employees (former and current) of Smith Micro Software may be eligible to file a complaint for putting stock s at risk if they can prove their employer violated its fiduciary duty to them.
lawsuit According to that lawsuit filed in the United States District Court for the Central District of California filed for investors who purchased their SMSI sharesbetween November 3, 2010 and May 4, 2011 the plaintiff alleges that Smith Micro Sorftware, Inc (Nasdaq: SMSI) violated Federal Securities Laws by issuing false and misleading statements regarding its business prospects and financial results.

On January 11 Smith Micro Software, Inc. provided its 2011 Revenue Guidance. Smith Micro Software, Inc. (NASDAQ: SMSI) said based on its current financial and customer data and managements current plans and assumptions, Smith Micro Software expected fiscal 2011 full-year revenues to be in the range of $150 million to $160 million. In addition, Smith Micro Software expected to report full-year 2010 revenues in-line with its previously announced guidance of approximately $130 million, based on preliminary estimates of fourth quarter 2010 revenues of $35 million (unaudited). Fourth quarter 2010 revenues are subject to change as a result of final management review and closing adjustments prior to filing Smith Micro Software Form 10-K for fiscal 2010.

SMSI shares began decreasing from $16.85 on January 6th to $12.28 on January 25th.

Then on February 8, 2011 Smith Micro Software, Inc. (NASDAQ: SMSI) among other things announced that it has suspended its full-year 2011 revenue guidance. NASDAQ: SMSI shares fell from $13.08 per share on Feb 8th to as low as $7.99 during Feb 9th, a decline of almost 40%.

On May 4, 2011, Smith Micro Software announced its quarterly financial results for the first quarter in 2011. For the first quarter in 2011 Smith Micro Software reported a decrease in its quarterly Revenue and Net Income compared to one year earlier. Its quarterly Net Income fell from $1.59million for the first quarter in 2010 to a Net Loss of $7.75million for the first quarter in 2011.Smith Micro Software announced also its second quarter 2011 revenue guidance, which is below analysts estimates.

SMSI stock fell from $7.68 in the beginning of May to slightly above $4 per share in June 2011 and traded recently as low as $1.91 per share.