Case Update: This case has been settled for a total of $8 million.
Pomerantz LLP has been appointed Lead Counsel in the class action lawsuit against Polycom, Inc. (“Polycom” or the “Company”)(NASDAQ: PLCM) and certain of its officers. The class action, filed in United States District Court, Northern District of California, and docketed under 13-cv-3476-SC, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of Polycom between July 24, 2012 and July 23, 2013 both dates inclusive (the “Class Period”). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
Polycom provides standards-based unified communications and collaboration (UC&C) solutions for voice and video collaboration. The Company offers video, voice, and content-management and content-sharing solutions, such as telepresence and conference room systems, home/work office solutions, applications for mobile devices, browser-based video collaboration, cloud-delivered services, and specialized healthcare video carts.
The Complaint alleges that throughout the Class Period, Defendants made materially false and misleading statements regarding the Company’s business, operational and compliance policies. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (i) The Company’s CEO had been submitting inappropriate and irregular expense submissions, (ii) the Company’s CEO was violating the Company’s code of conduct and was subject to dismissal at all relevant times; (iii) the Company did not have effective internal controls over their business operations; (iv) the CEO’s improper conduct created a risk that he would be terminated from the Company, jeopardizing the Company’s future success, (v) as a result of the above, the Company’s financial statements were materially false and misleading at all relevant times.
On July 23, 2013, Polycom announced that its CEO Andrew Miller had resigned after the board found "irregularities" in his expense submissions. The Company stated that Mr. Miller accepted responsibility for his actions. On this news, the shares of Polycom fell $1.69 cents, or over 15% percent, to $9.49 per share on July 24, 2013, on volume of over 14 million shares.