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SAFENET
SafeNet, Inc. (NASD: SFNT) has allegedly backdated stock options.
The Complaint alleges that during the Class Period, SafeNet and the individual defendants violated the federal securities laws by issuing false and misleading proxy statements and periodic SEC filings.
The crux of the complaint is that defendants manipulated SafeNet's granting of stock options to provide themselves with unlawful benefits and, during the second and third quarters of 2005, defendants also engaged in improper accounting of revenues and costs relating to certain long-term delivery contracts.
In recent disclosures, SafeNet has announced: (1) the need to restate financial results for the second and third quarters of 2005 arising from improper booking of costs and revenues related to its long term contracts; (2) the termination of its CFO; and (3) pending investigations by the SEC and the US Attorney for the Southern District of New York.
SafeNet has further indicated that it would be restating its financial results for the fourth quarter of 2002, that its financial statements for the year ended 2002 should no longer be relied upon, and that it may restate other periods as well.
A class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of plaintiff Police & Fire Retirement System of the City of Detroit ("Plaintiff") and all similarly situated purchasers of SafeNet, Inc. ("SafeNet" or the "Company") (NASDAQ: SFNT) common stock during the period between March 31, 2003 to May 18, 2006 (the "Class Period").
The Complaint alleges that during the Class Period, SafeNet and the individual defendants violated the federal securities laws by issuing false and misleading proxy statements and periodic SEC filings. The Complaint alleges that, throughout the Class Period, Defendants manipulated SafeNet's granting of stock options to provide themselves with unlawful benefits and, during the second and third quarters of 2005, Defendants also engaged in improper accounting of revenues and costs relating to certain long-term delivery contracts. In three separate recent disclosures, SafeNet has announced: (1) the need to restate financial results for the second and third quarters of 2005 arising from improper booking of costs and revenues related to its long term contracts; (2) the termination of its CFO; and (3) pending investigations by the SEC and the Office of the United States Attorney for the Southern District of New York. The price of SafeNet stock declined in response to each disclosure. On July 26, 2006, SafeNet confirmed that it would be restating its financial results for the fourth quarter of 2002, that its financial statements for the year ended 2002 should no longer be relied upon, and that it may restate other periods as well.
The Complaint alleges that all Defendants violated Section 14(a) of the Securities Exchange Act of 1934 (the "Exchange Act") and Rule 14a-9 promulgated thereunder; that Defendants SafeNet, Anthony A. Caputo, Kenneth A. Mueller, Carole D. Argo, Thomas A. Brooks, Ira A. Hunt, Jr., Bruce R. Thaw and Arthur L. Money violated Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder; that all of the Individual Defendants violated Section 20(a) of the Exchange Act.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
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