RADNOR, Pa., Dec. 7 /PRNewswire/ -- The following statement was issued today by the law firm of Schiffrin Barroway Topaz & Kessler, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of California on behalf of all purchasers of securities of Leap Wireless International, Inc. ("Leap" or the "Company") from January 7, 2005 through November 9, 2007, inclusive (the "Class Period").
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 Schiffrin Barroway Topaz & Kessler, LLP (Darren J. Check, Esq. or Richard A. Maniskas, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at
The Complaint charges Leap and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Leap, together with its subsidiaries, is a wireless communications carrier that offers digital wireless service under the Cricket and Jump Mobile brands in the United States. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company's service and equipment revenues and costs were misstated in its financial statements; (2) that the Company's operating expenses were understated in its financial statements; (3) that the Company's financial statements were not prepared in accordance with Generally Accepted Accounting Principles ("GAAP"); (4) that the Company lacked adequate internal and financial controls; and (5) that, as a result of the foregoing, the Company's financial statements were materially false and misleading at all relevant times.
On November 9, 2007, the Company shocked investors when it announced that its financial statements from fiscal year 2004 through the second quarter of 2007 should not be relied upon, and would be restated. The restated financial statements for these periods would correct errors in the Company's previously reported service revenues, equipment revenues and operating expenses. The Company revealed that the restatements would "result in a net cumulative reduction of approximately $20 million in service revenues and approximately $20 million in operating income," as could result in the Company's default under a senior secured credit agreement with approximately $890 million in borrowings outstanding. This default would arise from the Company having breached its representations regarding the presentation of its prior financial statements. On this news, the Company's shares declined $21.38 per share, or nearly 37 percent, to close on November 9, 2007 at $36.72 per share, on unusually heavy trading volume.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin Barroway Topaz & Kessler which prosecutes class actions in both state and federal courts throughout the country. Schiffrin Barroway Topaz & Kessler is a driving force behind corporate governance reform, and has recovered billions of dollars on behalf
of institutional and individual investors from the United States and around the world.
For more information about Schiffrin Barroway Topaz & Kessler or to sign up to participate in this action online, please visit http://www.sbtklaw.com/
If you are a member of the class described above, you may, not later than January 28, 2008, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. Any member of the purported class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
CONTACT: Schiffrin Barroway Topaz & Kessler, LLP
Darren J. Check, Esq.
Richard A. Maniskas, Esq.
280 King of Prussia Road
Radnor, PA 19087
1-888-299-7706 (toll free) or 1-610-667-7706
Or by e-mail at
