NEW YORK, Aug. 10, 2023 (GLOBE NEWSWIRE) -- Gainey McKenna & Egleston announces that a securities class action lawsuit has been filed in the United States District Court for the Eastern District of Texas on behalf of all persons or entities who purchased the securities of DZS Inc.. (“DZS” or the “Company”) ( DZSI) between August 2, 2022 through June 1, 2023, both dates inclusive (the “Class Period”).
The Class Period begins on August 2, 2022, when the Company filed with the SEC its quarterly report on Form 10-Q for the period ending June 30, 2022 (the “2Q22 10-Q”), claiming that “there were no changes in [DZS’s] internal control over financial reporting that occurred during [the Company’s] last fiscal quarter that have materially affected, or are reasonably likely to materially affect, [DZS’s] internal control over financial reporting.” On November 1, 2022, the Company filed with the SEC its quarterly report on Form 10-Q for the period ending September 30, 2022 (the “3Q22 10-Q”). The Complaint alleges the Company once again led the market to believe that DZS’s internal control over financial reporting was effective, claiming for example, that there “were no changes in [DZS’s] internal control over financial reporting…that have materially affected, or are reasonably likely to materially affect, [DZS’s] internal control over financial reporting.”
The Complaint alleges that these statements falsely assured the market that DZS maintained adequate and effective internal controls, when, in fact, DZS had ongoing undisclosed issues with its internal controls over financial reporting.
The Complaint alleges that on June 1, 2023, before the market opened, DZS filed a Current Report on Form 8-K with the SEC, revealing the discovery of an accounting error relating to the timing of revenue recognition with respect to certain customer projects.
On this news, the Company’s stock declined $2.17 per share, or 36%, to close at $3.82 per share on June 1, 2023.
Investors who purchased or otherwise acquired shares of DZS should contact the Firm prior to the October 9, 2023 lead plaintiff motion deadline. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. If you wish to discuss your rights or interests regarding this class action, please contact Thomas J. McKenna, Esq. or Gregory M. Egleston, Esq. of Gainey McKenna & Egleston at (212) 983-1300, or via e-mail at [email protected] or [email protected].
Please visit our website at http://www.gme-law.com for more information about the firm.
