NEW YORK, Dec. 28 /PRNewswire/ -- Zwerling, Schachter & Zwerling, LLP ("Zwerling Schachter") filed a class action lawsuit in the United States District Court for the Southern District of New York. The class action is brought on behalf of all persons and entities who purchased or acquired the common stock of Virgin Mobile USA, Inc. ("Virgin Mobile" or the "Company") (New York Stock Exchange: VM) pursuant and/or traceable to the Company's October 11, 2007 initial public offering of 27.5 million shares at $15.00 per share (the "IPO") and who suffered damages (the "Class"). As described below, the deadline to file a motion seeking to be appointed lead plaintiff is January 22, 2008.
The complaint alleges that the Company's Registration Statement and Prospectus ("Registration Statement/Prospectus") filed with the SEC on or about October 10, 2007 contained statements that were materially false and misleading, or omitted to state other facts necessary to make the statements made not misleading, because: (1) the Company had already suffered a larger than expected third quarter loss for the period ended September 30, 2007; (2) the Company was experiencing weakening demand for its services at the time of the IPO; (3) the Company's cost structure at the time of the IPO was too high for the Company to operate profitably; and (4) that, as a result of the foregoing, the Registration Statement/Prospectus was materially false and misleading.
On November 15, 2007, approximately one month after the IPO, Virgin Mobile announced earnings for the three month period ended September 30, 2007. The Company reported that its third-quarter loss widened to $7.3 million, compared with a loss of $5.1 million in the year-ago quarter. The Company also reported a pro-forma loss of $.15 cents per share, compared with a loss of $.10 cents per share in the year-ago period. As of November 16, 2007, shares of the Company's common stock had declined to $9.19 per share.
If you are a member of the Class, you may apply to serve as lead plaintiff. The lead plaintiff is responsible for overseeing the prosecution of the action and ensuring that the interests of the class are protected. You may apply to be appointed lead plaintiff through Zwerling Schachter.
If you wish to discuss this securities class action or have any questions concerning your rights and interests with respect to this matter, please contact Zwerling Schachter (Kevin McGee, Esq. or Willy Gonzalez) at 1-800-721-3900 or by e-mail at
Zwerling Schachter concentrates in prosecuting class actions nationwide on behalf of investors. The firm currently plays a leading role in numerous major securities and complex commercial litigations pending in federal and state courts and has offices in New York City, Garden City, New York, Boca Raton, Florida and Seattle, Washington. The firm has been recognized by courts throughout the country as highly experienced and skilled in complex litigation, particularly with respect to federal securities class action litigation.
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