Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a class action lawsuit in the United States District Court for the Northern District of California on behalf of a class consisting of all persons or entities who purchased the common stock of Accuray Incorporated (“Accuray” or the “Company”) (Nasdaq:ARAY) pursuant and/or traceable to the Company's Initial Public Offering commencing on or about February 7, 2007 (the “IPO”), including purchasers of the Company’s common stock between February 7, 2007 and August 19, 2008, inclusive (the “Class Period”).
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at http://www.glancylaw.com.
The Complaint charges Accuray and certain of its executive officers and directors with violations of federal securities laws. Accuray designs, develops and sells the CyberKnife system, an image-guided, robotic radio surgery system for the treatment of solid tumors. The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning Accuray’s business, operations and prospects were materially false and misleading. Specifically, plaintiff alleges that defendants knew or recklessly disregarded and failed to disclose material adverse information, including, among other things: (a) that defendants overstated the amount of the Company's backlog by millions of dollars; (b) that defendants reported as backlog a large percentage of contingent and non-contingent orders for the CyberKnife system that did not have a substantially high probability of being booked as revenue; (c) that Accuray sales personnel entered into contingent contracts for CyberKnife systems that did not have a substantially high probability of being booked as revenue; (d) that Accuray did not have adequate internal controls and procedures to ensure that potential orders reported as backlog had a substantially high probability of being booked as revenue; and (e), based on the foregoing, that defendants lacked a reasonable basis for their positive statements about the Company’s backlog, operations and financial condition.
On January 30, 2008, Accuray announced a reduction in its earning guidance for fiscal year 2008 and that approximately $30 million of orders were taken out of backlog. As a result of this news, Accuray shares plummeted approximately 36% from the previous day’s close of $14.98 per share, to close on January 31, 2008 at $9.52 per share on extremely high volume of more than 10 million shares traded.
Then, on August 19, 2008, Accuray revealed that another $39 million had been removed from backlog. The next day, in response to this news, Accuray shares fell as low as $6.90 per share, or approximately 9% below the previous day’s close, and eventually closed at $7.71 on August 20, 2008, on volume of more than 2.2 million shares traded.
Plaintiff seeks to recover damages on behalf of class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the class described above, you may move the Court, no later than September 21, 2009, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, or Richard A. Maniskas, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
Contacts:
Glancy Binkow & Goldberg LLP, Los Angeles, CA
Michael Goldberg
Richard
A. Maniskas
310-201-9150 or 888-773-9224
info@glancylaw.com
www.glancylaw.com
