December 18th, 2007 by merchant account blog
Verifone gets a class action lawsuit
Filed in: Industry News | 1 comment
About a week ago Verifone stock took a huge dive due to a overestimate of profit margins. Verifone stock fell 45% in a single day when they announced that profit had been overstated by 80% for 2007.
Companies do make mistakes, and occasionally large ones like this. However, in this particular case the CEO sold his own Verifone stock the day before the crash making millions while every other shareholder lost half their Verifone stock.
There is now a class action lawsuit against Verifone for violating the Securities Exchange Act of 1934.
It seems that many companies tends to suffer from recent recession which is going on in the US right now. If worse getting worse there would be more problems to arise and I think that stocks would surely be affected and more business will suffer the same thing that have happened in verifone.