If you purchased shares of ShoreTel in connection with the IPO or if you
\npurchased shares thereafter in the open market, you are urged to contact
\nLewis Kahn, Managing Partner, KGS, toll free 1-866-467-1400, ext. 100, via
\ncell phone at 504-301-7900, or by email at lewis.kahn@kgscounsel.com to
\nlearn about your legal rights and how this action may benefit you. For
\nfurther information on KGS, please visit www.kgscounsel.com.<\/p>\n
ShoreTel, certain of its officers and directors, and the Company’s
\nunderwriters are charged with including, or allowing the inclusion of,
\nmaterially false and misleading statements in the Registration Statement
\nand Prospectus issued in connection with the IPO, in violation of the
\nSecurities Act of 1933.<\/p>\n
The Complaint alleges that following ShoreTel’s July 3, 2007 IPO — which
\nraised gross proceeds of at least $86.3075 million — investors learned the
\ntruth about the Company on January 7, 2008 — including that the problems
\nwhich existed at the time of the IPO would result in extremely
\ndisappointing results for the third quarter of fiscal 2008 (the period
\nended December 31, 2007), including much lower than expected revenues and
\nhigher than expected costs and expenses. At that time, defendants first
\nbelatedly revealed that sales to new customers were substantially lower
\nthan expected, and that sales to existing customers was not sufficient to
\noffset these declines. In addition, by this time, it became obvious to
\ninvestors that the Company did not maintain adequate internal controls, and
\nthat a proper due diligence investigation into the Company, by the
\nUnderwriters, was not properly carried out prior to the Offering.<\/p>\n
On this news, on January 7, 2008, over 6.0 million shares of ShoreTel
\ntraded — over 20 times average daily trading volume — and Company shares
\nplummeted — falling over 50% to close at $6.02 per share.<\/p>\n
If you wish to serve as lead plaintiff in this class action lawsuit, you
\nmust move the Court no later than March 17, 2008. Any member of the
\npurported class may move the Court to serve as lead plaintiff through
\ncounsel of their choice, or may choose to do nothing and remain an absent
\nclass member. If you would like to discuss your legal rights, you may
\ne-mail or call KGS Managing Partner Lewis Kahn, without obligation or cost
\nto you, toll free 1-866-467-1400, ext. 100, or by email at
\nlewis.kahn@kgscounsel.com. To learn more about KGS, you may visit
\nhttp:\/\/www.kgscounsel.com. KGS focuses its practice on securities class
\naction litigation, and has been appointed lead counsel in numerous federal
\nsecurities class actions.\n<\/div>\n<\/blockquote>\n<\/div>\n
\nWhile it is not possible to know the outcome of this suit or if it will even take place, going public certainly adds pressure to companies as they have new problems to deal with such as patent issues<\/a> and class action suits.<\/p>\nIt will be interesting to see if this suit reduces the company’s focus on marketing its products and\/or hitting its numbers.<\/p>\n","protected":false},"excerpt":{"rendered":"
Kahn Gauthier Swick, LLC (KGS) has announced an initial filing of securities for a class action suit against Shoretel. According to a press release: If you purchased shares of ShoreTel in connection with the IPO or if you purchased shares thereafter in the open market, you are urged to contact Lewis Kahn, Managing Partner, KGS,<\/p>\n","protected":false},"author":44,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[171,179,172,199,188,1673,189,118,190,191,175],"tags":[],"post_mailing_queue_ids":[],"_links":{"self":[{"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/posts\/6314"}],"collection":[{"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/users\/44"}],"replies":[{"embeddable":true,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/comments?post=6314"}],"version-history":[{"count":0,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/posts\/6314\/revisions"}],"wp:attachment":[{"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/media?parent=6314"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/categories?post=6314"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/blog.tmcnet.com\/blog\/rich-tehrani\/wp-json\/wp\/v2\/tags?post=6314"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}