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DZSI.US
id: 760

DZS (DZSI) Revenue Restatement Case

E.D. Texas
Court
4:23-cv-603
Case number
10 Mar 2023
Class period Start
31 May 2023
Class period End
14 Aug 2023
Lead Plaintiff motion deadline
  • DZS announced a $15M revenue restatement for Q1 2023.
  • $DZSI dropped 36%, damaging shareholders.
  • Investors suspect DZS & its Accountables of misleading.
On June 01, 2023, DZS (Nasdaq: DZSI) announced that it will restate its previously issued financial statements for Q1 f 2023, which ended March 31, 2023.
  • The restatement relates to the timing of revenue recognition with respect to two customer projects.
  • The value of the revenue to be restated is approximately $15 million, of which the company anticipates the majority will be recognized during the second and third quarters of 2023.
  • The associated customer relationships are in good standing, and the customers have begun paying the amounts due to the Company.
On this news, $DZSI dropped 36%, damaging shareholders.

Taking appeared facts into account, Investors have reasons to suspect DZS and Accountables of misleading and concealment of material facts which led to investment losses. Specifically, they made false and/or misleading statements and/or failed to disclose, among other things, that:
  1. DZS’ financial statements from March 31, 2023, to the present contained certain errors;
  2. as a result, DZS would need to restate its previously filed quarterly financial statement for the period ending March 31, 2023;
  3. the Company had ongoing undisclosed issues with its internal controls over financial reporting; and
  4. as a result, Defendants’ statements about its business, operations, and prospects, were materially false and misleading and/or lacked a reasonable basis at all relevant times.
When the true details entered the market, investors suffered damages.
Case Status
Lead Plaintiff Appointed
Alleged Offence
Misleading Statements
Financial Misrepresentation
Failure to Disclose
Negligence
Omissions
Suspected Party
Directors
Management
Service Provider
Security Type
Stocks
Trade Direction
Long
Shock Event Date
01 June 2023
Lead Plaintiff Deadline
14 August 2023
Collecting participants…