Robbins Umeda LLP Announces an Investigation of Smith Micro Software, Inc.
Robbins Umeda LLP, a shareholder rights litigation firm, has commenced an investigation into possible breaches of fiduciary duty and other violations of the law by certain officers and directors at Smith Micro Software, Inc. (NASDAQ: SMSI). Smith Micro designs, develops, and markets software products for the mobile computing and communications industry. The company’s core product, QuickLink Mobile, is used in PCs and mobile devices. The company was founded in 1982, and is headquartered in Aliso Viejo, California.
Robbins Umeda LLP’s investigation focuses on whether the directors and officers of Smith Micro breached their fiduciary duties to shareholders by causing or permitting the company to issue false and/or misleading statements regarding the company’s business and financial results. In particular, we are examining whether the officers and directors caused Smith Micro to falsely represent the company’s ability to transition its business to 4G devices and the nature of demand for several of the company’s products. On February 8, 2011, Smith Micro announced that it was suspending its revenue guidance for 2011, and that the company was revising its revenue projections for the first quarter to be in the range of $15 to $20 million. On this news, the company’s stock price lost nearly 35% of its value. On May 4, 2011, the company’s stock price fell an additional 22%, after it issued a press release disclosing first quarter revenue losses of $7.5 million and a diluted EPS of $0.22. The same press release also acknowledged that the company had no customers for some of its major consumer products, including Quicklink Mobile.
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