SOURCE: Dyer & Berens LLP

August 04, 2009 14:14 ET

Dyer & Berens LLP Files Class Action Lawsuit on Behalf of Investors Who Purchased Comtech Telecommunications Corp. Common Stock Between 9/17/08 and 3/9/09; Announces Upcoming Investor Deadline -- CMTL

DENVER, CO--(Marketwire - August 4, 2009) - Dyer & Berens LLP (www.DyerBerens.com) today announced that it has filed a class action lawsuit in the United States District Court for the Eastern District of New York on behalf of investors who purchased Comtech Telecommunications Corp. ("Comtech" or the "Company") (NASDAQ: CMTL) common stock between September 17, 2008 and March 9, 2009, inclusive (the "Class Period"). The complaint charges Comtech and certain of its officers and directors with violations of the federal securities laws.

If you wish to serve as a lead plaintiff, you must move the court no later than September 14, 2009. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel, Jeffrey A. Berens, Esq. at (888) 300-3362, (303) 861-1764, or via email at jeff@dyerberens.com. Any member of the putative class may move the court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.

The complaint alleges that defendants deceived the investing public regarding Comtech's business, operations and management and the intrinsic value of Comtech common stock. As a result, the Company's stock traded at artificially inflated prices during the Class Period. Specifically, the complaint alleges that during the Class Period, defendants lacked a reasonable basis for their positive statements about the Company, its prospects, and its revenue and earnings projections because: (a) the Company was experiencing negative trends in its commercial satellite earth station and encoder bookings, as well as commercial RF Amplifier bookings; (b) the Company's sales from its Mobile Data Communications division were weakening outside of its one order with the U.S. Army Movement Tracking System; (c) the Company was experiencing difficulty integrating the Radyne acquisition and was not generating the synergies expected from the acquisition; and (d) the Company's costs were rising in excess of internal forecasts, reducing profit margins.

On March 9, 2009, Comtech issued a press release in which announced its financial results for the fiscal second quarter of 2009. It also released drastically reduced revenue and earnings guidance for 2009. In response to the announcements, the price of Comtech common stock fell $12.97 per share, or approximately 37%, to close at $22.48 per share, on extremely heavy trading volume.

Plaintiff seeks to recover damages on behalf of Comtech investors. The plaintiff is represented by Dyer & Berens LLP, which has expertise in prosecuting investor class actions involving financial fraud. The firm's extensive experience in securities litigation, particularly in cases brought under the Private Securities Litigation Reform Act, has contributed to the recovery of hundreds of millions of dollars for aggrieved investors. For more information about the firm, please go to www.DyerBerens.com.

Contact Information

  • Contact:

    Jeffrey A. Berens
    Dyer & Berens LLP
    682 Grant Street
    Denver, CO 80203
    Tel: (888) 300-3362 or (303) 861-1764
    Email: Email Contact
    Website: www.DyerBerens.com