The Rosen Law Firm today announced that it has filed a class action lawsuit in the U.S. District Court for the District of Columbia on behalf of all purchasers of the common stock of Inphonic, Inc. (the "Company" or "Inphonic") (NASDAQ: INPC) during the period from August 2, 2006 through May 3, 2007.
The complaint charges that Inphonic and certain of its officers and directors violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by issuing materially false and misleading statements concerning the Company's 2006 fiscal year financial results in violation of the federal securities laws and generally accepted accounting principles.
The Complaint alleges that during the Class Period the Company materially misrepresented its net income for the fiscal year ended December 31, 2006 and the interim second, third, and fourth quarters. The Complaint also alleges that the Company improperly recognized revenues for certain cancelled consumer contracts, as well as other errors in the income statement. The Complaint alleges that the cumulative effect of all these errors caused an aggregate net loss of at least $43 to $49 million for fiscal 2006, as compared to the $17.3 million net loss from continuing operations the Company preliminarily announced for fiscal 2006. The Complaint also asserts that certain officers and directors of the Company were able to sell significant amounts of stock during the Class Period while the stock was artificially inflated. As a result of these adverse events, the Complaint asserts that shareholders were damaged.
A class action lawsuit has already been filed on behalf of Inphonic shareholders. If you wish to serve as lead plaintiff, you must move the Court within 90 days of today. If you wish to join the litigation or to discuss your rights or interests regarding this class action, please contact plaintiff's counsel, Laurence Rosen, Esq. or Phillip Kim, Esq. of The Rosen Law Firm toll free at 866-767-3653 or via e-mail at lrosen@rosenlegal.com or pkim@rosenlegal.com.
The Rosen Law Firm has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud. The Rosen Law Firm represents investors throughout the nation, concentrating its practice in securities class actions.
