San Francisco, California--(Newsfile Corp. - August 12, 2023) - Hagens Berman urges DZS Inc. (NASDAQ: DZSI) investors who suffered substantial losses to submit your losses now.
Class Period: Aug. 2, 2022 - June 1, 2023
Lead Plaintiff Deadline: Aug. 14, 2023
Visit: www.hbsslaw.com/investor-fraud/DZSI
Contact An Attorney Now: [email protected]
844-916-0895
DZS Inc. (NASDAQ: DZSI) Securities Fraud Class Action:
The litigation focuses on the propriety of DZS's accounting and the effectiveness of its internal controls over financial reporting.
More specifically, on May 8, 2023, DZS announced its financial results for its Quarter Ended March 31, 2023 that included Q1 2023 revenue of $91 million, an 18% increase year-over-year and within the guidance range of $90 - $100 million.
The complaint alleges that Defendants made material misstatements and failed to disclose that: (1) DZS's financial statements for its quarter Ended March 31, 2023 contained material errors; (2) as a result, the company would need to restate its previously filed financial statements for the quarter ended March 31, 2023; and (3) the company had ongoing undisclosed issues with its internal controls over financial reporting.
Investors learned the truth on June 1, 2023, when DZS announced that it would restate its financial results for its fiscal quarter ended March 31, 2023. The company admitted that it improperly recognized approximately $15 million of revenue during the quarter. The company further revealed that "[t]he restatement relates to the timing of revenue recognition with respect to two customer projects" and "'[t]he most significant of the two revenue restatements is with a long-standing, highly valued customer.'" The improperly recognized revenue equates to an approximate 19% overstatement during Q1 2023, without which DZS would have fallen well short of the guidance range.
In addition, DZS withdrew its Q2 2023 guidance issued on May 8, 2023.
This news drove the price of DZS shares crashing lower on June 1, 2023.
"We're focused on investors' losses and proving DZS intentionally cooked its books," said Reed Kathrein, the Hagens Berman partner leading the investigation.
If you invested in DZS and have substantial losses, or have knowledge that may assist the firm's investigation, click here to discuss your legal rights with Hagens Berman.
Whistleblowers: Persons with non-public information regarding DZS should consider their options to help in the investigation or take advantage of the SEC Whistleblower program. Under the new program, whistleblowers who provide original information may receive rewards totaling up to 30 percent of any successful recovery made by the SEC. For more information, call Reed Kathrein at 844-916-0895 or email [email protected].
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About Hagens Berman
Hagens Berman is a global plaintiffs' rights complex litigation law firm focusing on corporate accountability through class-action law. The firm is home to a robust securities litigation practice and represents investors as well as whistleblowers, workers, consumers and others in cases achieving real results for those harmed by corporate negligence and fraud. More about the firm and its successes can be found at hbsslaw.com. Follow the firm for updates and news at @ClassActionLaw.
Contact:
Reed Kathrein, 844-916-0895
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/176954
