(Source: MARKETWIRE)
Brower Piven, A Professional Corporation announces that a class action lawsuit has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of Accuray, Inc. ("Accuray" or the "Company") (NASDAQ: ARAY) common stock pursuant or traceable to the Company's Initial Public Offering (the "IPO") on or about February 7, 2007, as well as purchasers of the Company's common stock between February 7, 2007 and August 19, 2008, inclusive (the "Class Period").
No class has yet been certified in the above action. Members of the Class will be represented by the lead plaintiff and counsel chosen by the lead plaintiff. If you wish to choose counsel to represent you and the Class, you must apply to be appointed lead plaintiff no later than September 21, 2009 and be selected by the Court. The lead plaintiff will direct the litigation and participate in important decisions including whether to accept a settlement and how much of a settlement to accept for the Class in the action. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You may contact Brower Piven (through hoffman@browerpiven.com or 410/986-0036) to answer any questions you may have in that regard.
The complaint accuses the defendants of violations of the Securities Exchange Act of 1934 and the Securities Act of 1933 by virtue of the Company's failure to disclose in the registration statement issue for its initial public offering ("IPO") on or about February 7, 2007 and/or during the Class Period that at the time of Accuray's IPO, Accuray changed its definition of backlog to include both contingent and non-contingent contracts such that, beginning in the fiscal quarter ending March 31, 2007 (the time of the IPO), the total reported backlog would increase and be materially overstated because the backlog orders for the CyberKnife system did not have a substantially high probability of being booked as revenue while a significant portion of commissions paid to CyberKnife sales personnel were earned prior to those potential sales being booked as revenue. The complaint further alleges that Accuray did not have adequate internal controls and procedures to ensure that potential orders reported as backlog had a substantially high probability of being booked as revenue; and that, based on the foregoing, defendants lacked a reasonable basis for their positive statements about the Company, its backlog, earnings, operations and prospects. According to the complaint, on August 19, 2008, after the Company announced its fiscal fourth quarter and full year 2008 financial results for the period ended June 28 and revealed that Accuray removed another $39 million from backlog (making the total backlog removed in the last 3 quarters of fiscal 2008 approximately $127 million), the value of Accuray's stock declined significantly.
If you have suffered a net loss for all transactions in Accuray, Inc. common stock during the Class Period, you may obtain additional information about this lawsuit and your ability to become a lead plaintiff by contacting Brower Piven at www.browerpiven.com, by email at hoffman@browerpiven.com, by calling 410-986-0036, or at Brower Piven, A Professional Corporation, The World Trade Center-Baltimore, 401 East Pratt Street, Suite 2525, Baltimore, Maryland 21202. Attorneys at Brower Piven have combined experience litigating securities and class action cases of over 40 years. If you choose to retain counsel, you may retain Brower Piven without financial obligation or cost to you, or you may retain other counsel of your choice. You need take no action at this time to be a member of the class.
CONTACT: Charles J. Piven Brower Piven, A Professional Corporation Baltimore, Maryland 410/986-0036 Email Contact
SOURCE: Brower Piven, A Professional Corporation
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