SOURCE: Shalov Stone Bonner & Rocco LLP

Shalov Stone Bonner & Rocco LLP

August 05, 2009 13:24 ET

Shalov Stone Bonner & Rocco LLP Announces Class Action Against Accuray Incorporated

NEW YORK, NY--(Marketwire - August 5, 2009) - Shalov Stone Bonner & Rocco LLP announces that a class action lawsuit has been filed on behalf of purchasers of the common stock of Accuray Incorporated ("Accuray" or the "Company") (NASDAQ: ARAY) between February 7, 2007 and August 19, 2008, inclusive (the "Class Period"). Also included are purchasers of Accuray common stock pursuant or traceable to the Company's Initial Public Offering on or about February 7, 2007. The lawsuit is pending in the United States District Court for the Northern District of California.

The complaint alleges that, throughout the Class Period, the defendants made false and misleading statements concerning Accuray's financial performance, but failed to disclose that: Accuray amended its definition of backlog to include both contingent and non-contingent contracts; that a considerable percentage of contingent and non-contingent orders for the CyberKnife system that did not have a high probability of being booked as revenue were reported as backlog; Accuray's backlog was overstated by at least $127 million; Accuray sales personnel entered into contingent contracts for CyberKnife systems that did not have a high probability of being booked as revenue; the Company lacked adequate internal controls and procedures to ensure that potential orders reported as backlog had a substantially high probability of being booked as revenue; and that based on the foregoing, defendants did not have a reasonable basis for their positive statements about Accuray, its backlog, earnings, operations and prospects.

Shalov Stone Bonner & Rocco LLP has extensive experience in the prosecution of class actions on behalf of investors. For more information about the firm, please visit its website at: www.lawssb.com

If you would like additional information about the lawsuit or would like to participate in it, please contact investor rights attorney Amanda C. Scuder, at Shalov Stone Bonner & Rocco LLP, 485 Seventh Avenue, Suite 1000, New York, New York 10018 (telephone: (212) 239-4340; email: ascuder@lawssb.com).

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