Quantcast
Regulation

Five-Year-Old Lawsuit Against VeriFone Brought Back to Court

Print
Email
Reprints
Twitter
LinkedIn
Facebook
Google+
Partner Insights

A U.S. appeals court has reversed the dismissal of a shareholder class action brought against VeriFone in the wake of its 2007 earnings restatement of three quarters from that year, the company stated in a Securities and Exchange Commission filing

The 9th U.S. Circuit Court of Appeals in San Francisco made the decision. The case was originally put to bed by a lower court in March 2011. Reuters reported the news last week. 

In 2007, the restatement sent VeriFone's stock and market value tumbling.

A 152-page deposition that VeriFone CEO Douglas Bergeron voluntarily gave to the SEC shows that SEC attorneys confronted Bergeron with a cache of emails relating to his involvement in discussions about the company's financial reporting prior to the erroneous statements. 

At the time, VeriFone expected to earn 36.5 cents a share for a period that was not specified in the transcript. In a separate and unrelated email, Bergeron told colleagues that if the company didn't hit a certain number, "the party would be over big time for us," according to messages cited in the deposition.

In 2009, the SEC came to a settlement with VeriFone. VeriFone's chief financial officer, Barry Zwarenstein, resigned. Bergeron relinquished the chairmanship shortly after the episode.

SEE MORE IN

Email Newsletters

Get the Payments Update and the Morning Scan when you sign up for a free trial.

Already a subscriber? Log in here
Please note you must now log in with your email address and password.