SOURCE: Milberg LLP

July 16, 2008 18:17 ET

Milberg LLP Announces the Filing of Class Action Lawsuit Against MRV Communications, Inc. -- MRVC

NEW YORK, NY--(Marketwire - July 16, 2008) - Attorney Advertising. Prior Results Do Not Guarantee a Similar Outcome. The law firm of Milberg LLP ("Milberg") announced today that it has filed a lawsuit in the United States District Court for the Central District of California against MRV Communications, Inc. ("MRV" or the "Company") (NASDAQ: MRVC) and certain of MRV's officers and directors for violations of the Securities Exchange Act of 1934. The lawsuit is filed on behalf of purchasers and acquirers of common stock from March 31, 2003, through June 5, 2008 (the "Class Period").

MRV Communications, Inc., together with its subsidiaries, supplies communications equipment and services to carriers, governments, and enterprises worldwide.

The Complaint alleges that during the Class Period, MRV and certain of its officers and directors violated federal securities laws by issuing materially false and misleading statements regarding the Company's financial statements, business and prospects, including false and misleading statements regarding MRV's employee stock options grant practices. The Complaint alleges that defendants caused or allowed MRV to issue statements that failed to disclose or misstated the following: (i) that the Company had problems with its internal controls that prevented it from issuing accurate financial reports and projections; (ii) that because of improperly recorded stock-based compensation expenses, the Company's financial results violated Generally Accepted Accounting Principles ("GAAP"); and (iii) that the Company's public disclosures covering a seven-year period presented an inflated view of MRV's earnings and earnings per share, which would later have to be restated.

On June 5, 2008, MRV announced that it expects to restate its 2002 through 2008 financial statements, and that its previously issued financial statements, earnings press releases and similar communications for those periods should no longer be relied upon. The restatement was anticipated to address stock-option backdating problems and related accounting issues. That report came after the Company's previous announcement that a review of its options granting practices found no evidence that grant dates were designed to occur on dates with lower, more favorable exercise prices. MRV's management was now stating that it was likely that the previous conclusions were incorrect. Upon disclosure of this news, MRV's share price plummeted approximately 24%.

If you purchased or acquired the common stock of MRV from March 31, 2003, through June 5, 2008, you may move the court no later than September 8, 2008, and request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. To be appointed lead plaintiff, the Court must decide that your claim is typical of the claims of other class members, and that you will adequately represent the class. Your share in any recovery will not be enhanced or diminished by the decision of whether or not to serve as a lead plaintiff. You may retain Milberg LLP, or other attorneys, to serve as your counsel in this action.

Milberg LLP has been representing individual and institutional investors for nearly 40 years and serves as lead counsel in federal and state courts throughout the United States. Please visit the Milberg website (http://www.milberg.com) for more information about the firm. If you wish to discuss this matter with us, or have any questions concerning your rights and interests with regard to this matter, please contact the following attorneys:

Jeff S. Westerman, Esq.
MILBERG LLP
300 S. Grand Avenue, Suite 3900
Los Angeles, California 90071
Phone number: (800) 320-5081
Email: contactus@milbergweiss.com
Website: http://www.milberg.com

Benjamin Kaufman
Milberg LLP
One Pennsylvania Plaza, 49th Fl.
New York, NY 10119-0165
Phone number: (800) 320-5081
Email: contactus@milberg.com
(Principal Office)
Website: http://www.milberg.com

ATTORNEY ADVERTISING. PRIOR RESULTS DO NOT GUARANTEE A SIMILAR OUTCOME.

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