HARTFORD, Conn., Oct. 5, 2007 LAWFUEL – Class Action Litigation– The law firm of
Schatz Nobel Izard P.C., which has significant experience representing
investors in prosecuting claims of securities fraud, announces that a
lawsuit seeking class action status has been filed in the United States
District Court for the Northern District of California on behalf of all
persons who purchased the common stock of Sonic Solutions (“Sonic”)
(Nasdaq:SNIC) between October 4, 2002 and May 17, 2007, inclusive (the
“Class Period”).
The complaint charges that Sonic and certain of its officers and
directors violated federal securities laws. Specifically, prior to the
Class Period, Sonic had manipulated its stock option accounting which
caused its SEC filings made during the Class Period to be false. Also
during the Class Period, Sonic and its top officers made false and
misleading statements about its business and prospects, all while
concealing its false stock option grant practices, causing its stock to
trade at artificially inflated levels.
On February 1, 2007, Sonic announced that it had commenced a voluntary
review of its historical and current stock option grant practices and
related accounting. Then, on May 17, 2007, after the market closed,
Sonic announced its preliminary unaudited financial results for the
fourth quarter ended March 31, 2007, and stated that based on its
previous review, Sonic lacked sufficient documentation for certain
historical option grants and that the measurement dates associated with
these option grants will need to be adjusted. The Company further
stated that it will have to record additional cash and non-cash charges
for stock-based compensation expense and restate previous financial
statements, and that such charges will be material. On this news,
Sonic’s stock fell from $13.37 per share to as low as $11.76 per share.
If you are a member of the class, you may, no later than December 3,
2007, request that the Court appoint you as lead plaintiff of the
class. A lead plaintiff is a class member that acts on behalf of other
class members in directing the litigation. Although your ability to
share in any recovery is not affected by the decision whether or not to
seek appointment as a lead plaintiff, lead plaintiffs make important
decisions which could affect the overall recovery for class members,
including decisions concerning settlement. The securities laws require
the Court to consider the class member(s) with the largest financial
interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard P.C. has not filed a lawsuit against the
defendants, to view a copy of the Complaint initiating the class action
or for more information about the case, class action cases in general,
and your rights, please contact Schatz Nobel Izard P.C. toll-free at
(800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website:
www.snilaw.com.
