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Bernstein Litowitz Berger & Grossmann LLP Announces Filing of Class Action Suit Against SafeNet, Inc. and Certain of Its Senior Officers and Directors by Public Pension Fund

Bernstein Litowitz Berger & Grossmann LLP Announces Filing of Class Action Suit Against SafeNet, Inc. and Certain of Its Sen

NEW YORK, NY -- (MARKET WIRE) -- 08/01/06 -- Bernstein Litowitz Berger & Grossmann LLP ("BLB&G") today announced that 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 case is captioned Police & Fire Retirement System of the City of Detroit v. SafeNet, Inc., et al., Case No., 06-CV-5797, and has been assigned to the Honorable Paul A. Crotty.

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 wish to serve as lead plaintiff, you must move the Court no later than 60 days from August 1, 2006. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Plaintiff's counsel, Gerald H. Silk or Salvatore J. Graziano of Bernstein Litowitz at 212-554-1400, or via e-mail at jerry@blbglaw.com or sgraziano@blbglaw.com, respectively. You can view a copy of the Complaint as filed online at http://www.blbglaw.com/cases/safenet_securities.html. Any member of the proposed class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain a member of the proposed class.

Plaintiff is represented by BLB&G, a firm of 50 attorneys with offices in New York, California, Louisiana and New Jersey, which has extensive expertise in prosecuting investor class actions involving financial fraud. Since its founding in 1983, BLB&G has built an international reputation for excellence and integrity. Specializing in securities fraud, corporate governance, shareholders' rights, employment discrimination and civil rights litigation, among other practice areas, BLB&G prosecutes class and private actions on behalf of institutional and individual clients worldwide. Unique among its peers, BLB&G has obtained six of the ten largest and most significant securities recoveries in history, recovering nearly $20 billion on behalf of defrauded investors.

More information about Bernstein Litowitz Berger & Grossmann LLP can be found online at www.blbglaw.com.

CONTACT:
Bernstein Litowitz Berger & Grossmann LLP
New York, N.Y.

Gerald H. Silk
212-554-1400

Salvatore J. Graziano
212-554-1400

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