DZS Inc. (DZSI) Must Restate its Financial Statements
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired DZS Inc. (NASDAQ: DZSI) securities between March 10, 2023 and May 31, 2023. Defendant DZS purports to be a “global provider of access and optical networking infrastructure and cloud software solutions that enable the emerging hyper-connected, hyper-broadband world and broadband experiences.”
According to the complaint, during the class period, defendants failed to disclose that: (1) DZS’ financial statements from March 31, 2023 to the present included 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.
On June 1, 2023, before the market opened, the Company announced that it would restate its first quarter 2023 financial statements and update its full year 2023 guidance. On this news, the price of DZS stock plummeted by $2.17 per share, or 36%, to close at $3.82 on June 1, 2023, on extremely high trading volume. The next day, the price of DZS stock declined another $0.42, or 10.8%, to close at $3.46.
What Now: Similarly situated shareholders may be eligible to participate in the class action against DZS Inc. Shareholders who want to act as lead plaintiff for the class must file their papers by August 14, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
