INPC Inphonic (MM)

WASHINGTON, May 23 /PRNewswire-USNewswire/ -- The law firm of Finkelstein Thompson LLP announces that a lawsuit seeking class action status has been filed in the United States District Court for the District of Columbia against InPhonic, Inc. ("InPhonic" or the "Company") (NASDAQ:INPC) and certain of its officers and directors on behalf of purchasers of InPhonic securities between August 2, 2006 through May 3, 2007, inclusive, (the "Class Period"). Finkelstein Thompson LLP is investigating similar claims at this time and welcomes inquiries from potential class members concerning their rights and interests in this matter. The lawsuit alleges that InPhonic violated federal securities laws by issuing a series of false or misleading public statements regarding the Company's financial statements. Specifically, the complaint alleges that the Company improperly recorded carrier commissions and bonuses as revenues, improperly recorded rebates due to customers, failed to ensure the Company's financial statements complied with Generally Accepted Accounting Principles and had internal accounting and control procedures that were deficient. On April 3, 2007, the Company shocked the market by announcing that its quarterly financial statements for the periods ending June 30, 2006 and September 20, 2006 and the Company's year end results for the period ending December 31, 2006 should no longer be relied upon because of various accounting and control procedure deficiencies. The market reacted sharply to this disclosure by dropping from a closing share price of $10.36 down to $9.15, or over 11% per share, in a single day. InPhonic further shocked the market by revealing on May 4, 2007, that it had found additional accounting and internal control deficiencies not disclosed in its April 3, 2007 announcement. This caused the closing share price to drop from $8.54 to $7.90, or over 7% per share. If you are a member of the class, you may, no later than July 6, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member appointed by the Court to direct the litigation on behalf of the class. Although a class member need not be appointed as a lead plaintiff to receive a proportionate share of any proceeds of the litigation, lead plaintiffs make important decisions that could affect the prosecution of the class claims, including decisions concerning settlement. The securities laws create a rebuttable presumption that the plaintiff with the largest financial interest in the litigation is the most adequate to serve as a lead plaintiff. Finkelstein Thompson LLP has spent almost three decades delivering outstanding representation to institutional and individual clients in connection with securities and other finance-related litigation, and has been appointed as lead or co-lead counsel in dozens of shareholder class actions. Indeed, in the past ten years, the firm has served in leadership roles in cases that have recovered over $1 billion for investors and consumers. If you are an InPhonic shareholder and wish to discuss the information or have information relevant to the case, you can either email us at or contact our Washington, DC office toll-free at (877) 337-1050. DATASOURCE: Finkelstein Thompson LLP CONTACT: Finkelstein Thompson LLP, +1-877-337-1050 Web site: http://www.finkelsteinthompson.com/

Copyright