SOURCE: Abraham, Fruchter & Twersky, LLP

September 03, 2009 11:55 ET

Abraham, Fruchter & Twersky, LLP Files Class Action Suit Against Immersion Corporation

NEW YORK, NY--(Marketwire - September 3, 2009) - Abraham, Fruchter & Twersky, LLP today announced that a class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of Immersion Corporation ("Immersion" or the "Company") (NASDAQ: IMMR) common stock between May 3, 2007 and June 30, 2009 (the "Class Period").

The complaint charges Immersion and certain of its officers and directors with violating Section 10(b) of the Securities Exchange Act of 1934. The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's transactions in its Medical line of business.

According to the complaint, defendants failed to disclose that Immersion's revenue recognition practices in its Medical line of business were improper. This caused Immersion's stock to be artificially inflated during the Class Period, with prices reaching a high of $20.50 per share on July 13, 2007. On July 1, 2009, the Company issued a press release announcing that the Audit Committee of the Company's Board was conducting an internal investigation into certain previous revenue transactions in its Medical line of business, which could "raise issues with respect to its previously-reported financial information, which could be material." On this news, Immersion's stock dropped to close at $3.80 per share that day.

Plaintiff seeks to recover damages on behalf of all purchasers of Immersion common stock during the Class Period. The Plaintiff is represented by Abraham, Fruchter & Twersky, LLP which has extensive experience in securities class action cases, and the firm has been ranked among the leading class action law firms in terms of recoveries achieved by a survey of class action law firms conducted by Institutional Shareholder Services. If you would like to discuss this action or if you have any questions concerning this notice or your rights as a potential class member or lead plaintiff, you may contact: Jack G. Fruchter or Arthur J. Chen of Abraham, Fruchter & Twersky, LLP at 212-279-5050, or via e-mail at jfruchter@aftlaw.com or achen@aftlaw.com, respectively. If you wish to serve as lead plaintiff, you must move the Court no later than November 2, 2009. 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.

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Contact Information

  • Contact:

    Jack G. Fruchter
    Arthur J. Chen
    Abraham, Fruchter & Twersky, LLP
    One Penn Plaza, Suite 2805
    New York, N.Y. 10119
    Telephone: (212) 279-5050