BENSALEM, Pa., Nov. 1 /PRNewswire/ -- Law Offices of Howard G. Smith announces that a class action lawsuit has been filed on behalf of all persons or entities who purchased or otherwise acquired the securities of Cadence Design Systems, Inc. ("Cadence" or the "Company") between April 23, 2008 and October 22, 2008, inclusive (the "Class Period"). The class action lawsuit was filed in the United States District Court for the Northern District of California.
The Complaint charges Cadence and certain of the Company's executive officers with violations of federal securities laws. The Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning Cadence's business and operations were materially false and misleading.
On October 22, 2008, Cadence shocked investors when it delayed the announcement of its third-quarter financial results and disclosed that Cadence was reviewing, in conjunction with the Company's independent accountants and legal advisors, the recognition of revenue related to customer contracts signed during the first quarter of 2008. Cadence revealed that the Company initiated the review after preliminarily determining during its regular review of its third quarter results that approximately $24 million of revenue relating to these contracts was recognized during the first quarter of 2008, but should have been recognized ratably over the duration of the contracts commencing in the second quarter of 2008. Cadence further disclosed that the Company expects to restate its financial statements for the first quarter of 2008 and the first half of 2008 to correct the revenue recognition with respect to these contracts.
On this news, shares of Cadence declined $1.10 per share, more than 25%, to close on October 23, 2008, at $3.22 per share, on unusually heavy volume.
If you are a member of the class described above, you may move the Court, no later than December 29, 2008, to serve as lead plaintiff, however, you must meet certain legal requirements. If you have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Howard G. Smith, Esquire, of Law Offices of Howard G. Smith, 3070 Bristol Pike, Suite 112, Bensalem, Pennsylvania 19020 by telephone at (215) 638-4847, Toll Free at (888) 638-4847, by email to
