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VeriFone Systems Inc (NYSE:PAY) Investor Files Lawsuit Over Alleged Breaches Of Fiduciary Duties By Certain Directors

  • If you purchased shares of VeriFone Systems Inc (NYSE:PAY) prior to December 2011 and currently hold any of those NYSE:PAY shares, have certain options and should contact the Shareholders Foundation, Inc.

  • To have your information reviewed for options and to receive notifications about this case, please send an email to mail@shareholdersfoundation.com, or call us at (858) 779-1554.

Lawsuit Overview

Company
VeriFone Systems Inc
Security
NYSE: PAY

Case Name
VeriFone Systems Shareholder Derivative Lawsuit 04/26/2013
Type of Lawsuit
Stockholder Derivative Action
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Summary

April 30, 2013 (Shareholders Foundation) - An investor, who currently holds NYSE:PAY shares, filed a lawsuit against directors of VeriFone Systems Inc (NYSE:PAY) over alleged breaches of fiduciary duties in connection with certain a statements.
The plaintiff alleges that certain directors of VeriFone Systems Inc (NYSE:PAY) sold over $10 million in shares at artificially inflated prices by allegedly false and misleading statements and when the truth was revealed shares of VeriFone Systems Inc (NYSE:PAY) declined by over 40%.

The lawsuit against certain directors over alleged breaches of fiduciary duties comes after a lawsuit that was filed against VeriFone Systems Inc over alleged securities laws. The plaintiff in that lawsuit alleges that December 14, 2011 and February 19, 2013, Defendants issued a series of allegedly materially false and misleading statements regarding VeriFone Systems’ revenues and operations, by failing to disclose that VeriFone Systems did not properly execute its plan to move to a more subscriptions-based service model, that VeriFone Systems past acquisitions had masked its sharply declining revenue base, that VeriFone Systems was inappropriately recognizing revenues from distributors in periods where such revenues should have been deferred, that VeriFone Systems lacked adequate internal and financial controls, and that as a result of the above, VeriFone Systems’ financial statements were allegedly materially false and misleading at all relevant times.

On February 4, 2013, VeriFone Systems Inc announced the retirement of its Chief Financial Officer, as well as its Vice Chairman, Ellmore Waller. Robert Dykes was named as the Company's new CFO.

VeriFone stock declined $0.87 per share.

Then on February 20, 2013, VeriFone Systems Inc announced certain preliminary financial results for its first fiscal quarter of 2013.

NYSE:PAY shares declined from $32.13 per share on Feb. 20, 2013, to $18.01 per share on February 21, 2013.

On April 30, 2013, NYSE:PAY shares closed at $21.48 per share, which is less than half its current 52 week High of $51.34 per share.