- 5 February 2005 -

Schatz & Nobel files against Sierra Wireless

Schatz & Nobel, has filed a lawsuit seeking class action status in the US District Court for the Southern District of New York on behalf of all persons who purchased the common stock of Sierra Wireless Inc between January 28, 2004 and January 26, 2005.

The complaint alleges that Sierra and certain of its officers and directors, violated federal securities laws by issuing false statements concerning the Company's business condition. Specifically, defendants failed to disclose the following materially adverse facts:

(i) that Sierra's strategy to correct its deficiency in technology by introducing the Voq Smartphone was flawed and its business model was not working;
(ii) that Sierra was facing increasing competition, intensified by its failure to enter into the WCDMA (wideband code-division multiple access) market;
(iii) that Sierra's recent venture into the Smartphone market with the introduction of its new Voq line was a serious misstep, as it did little to add revenue and further seriously harmed Sierra's relationship with a prime customer palmOne as its Voq Smartphone would compete with palmOne's Treo -- the product for which Sierra was a supplier;
(iv) that Sierra's dependence on revenue from palmOne in its OEM business was substantially greater than had been reported; and
(v) that Sierra's customers were materially over- inventoried, which would lead to greatly diminished orders and sales in future quarters.

On January 26, Sierra issued a press release announcing that its revenue for the 4Q of 2004 was well below the previous guidance and it expected a steep decline in its revenue going forward. On the next trading day, January 27, 2005, Sierra's stock plummeted 38% to $8.97 per share.

Website: http://www.snlaw.net/