SOURCE: Stull, Stull & Brody

July 11, 2008 15:00 ET

Stull, Stull & Brody Announces Class Action on Behalf of Shareholders of MRV Communications, Inc.

NEW YORK, NY--(Marketwire - July 11, 2008) - Attorney Advertising. Notice is hereby given that a class action has been commenced in the United States District Court for the Central District of California on behalf of all purchasers of the common stock of MRV Communications, Inc. ("MRV" or the "Company") (NASDAQ: MRVC) between March 31, 2003 and June 5, 2008, inclusive (the "Class Period").

The complaint charges that MRV and certain of its officers and directors violated federal securities laws Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5, by issuing materially false and misleading statements regarding the Company's employee stock option grant practices and financial results. The complaint alleges that defendants caused or allowed MRV to issue statements that failed to disclose or misstated that: (i) MRV had problems with its internal controls that prevented it from issuing accurate financial reports and projections; (ii) because of improperly recorded stock-based compensation expenses, the Company's financial results violated Generally Accepted Accounting Principles; and (iii) 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 should no longer be relied upon. The restatement relates to the previously undisclosed stock-option back-dating problems and accounting issues and occurred after the Company's earlier announced that a review of its options granting practices found no evidence that grant dates were designed to occur on dates with lower and more favorable exercise prices. MRV's management has recently stated that it is likely that these previous conclusions were incorrect. On this news, MRV's stock price fell approximately 24%.

Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired MRV's common stock during the Class Period, which is between March 31, 2003 and June 5, 2008. If you purchased or otherwise acquired MRV's common stock during the Class Period, you may no later than September 8, 2008 request that the court appoint you as lead plaintiff in the action.

A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Stull, Stull & Brody, or other counsel of your choice, to serve as your counsel in this action. Stull, Stull & Brody has litigated many class actions for violations of securities laws in federal courts over the past 30 years and has obtained court approval of substantial settlements on numerous occasions. Stull, Stull & Brody maintains offices in New York and Los Angeles.

If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Tzivia Brody, Esq. at Stull, Stull & Brody by e-mail at SSBNY@aol.com, by calling toll-free 1-800-337-4983, by fax to 1-212-490-2022, or by writing to Stull, Stull & Brody, 6 East 45th Street, New York, NY 10017. You can also visit our website at www.ssbny.com.

Attorney Advertising. Prior Results Do Not Guarantee A Similar Outcome.

Contact Information

  • Contact:
    Tzivia Brody, Esq.
    Stull, Stull & Brody
    Email Contact
    Toll-Free: 1-800-337-4983
    Fax: 1-212-490-2022

    6 East 45th Street
    New York, NY 10017