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On April 3, 2007, Jackson Hewitt Tax Service Inc. (NYSE: JTX)
disclosed that the U.S. Department of Justice had sued the
operators of more than 125 Jackson Hewitt Tax Service Inc.
tax preparation offices. Specifically, these operators were accused
of cheating the U.S. Treasury of more than $70 million through
a "pervasive and massive series of tax-fraud schemes." Franchises
in Georgia, Illinois, Michigan and North Carolina were sued. It is
alleged that these operators encouraged the filing of fraudulent tax
returns, using such means as claiming bogus deductions and fuel
tax credits and seeking refunds based on phony earnings statements.
Not surprisingly, JTX stock plummeted; dropping approximately 18%.
It appears that investors who purchased JTX between January 4, 2006
and April 3, 2007 may be affected.
Behind A Stock Collapse: U.S. Auto Parts Network, Inc. (NASDAQ: PRTS)
On February 8, 2007, U.S. Auto Parts (NASDAQ: PRTS) accomplished
its IPO of 10 million shares at $10.00 per share (including 8 million
shares sold by U.S. Auto Parts and 2 million shares sold by stockholders).
The Registration Statement failed to disclose that U.S. Auto Parts was
having difficulty with its acquisition of PartsBin - a company it acquired
in May 2006 - which would adversely affect its fourth quarter 2006 and
first quarter 2007 results. On March 20, 2007, after the market closed,
the true condition of the company was revealed. The Company issued
a press release announcing a disappointing fourth quarter 2006 and
year end results. On this news, U.S. Auto Parts' stock price collapsed
in one day from $11.07 per share on March 20, 2007 to close at $6.49
per share on March 21, 2007.
Inphonic, Inc. (NASDAQ: INPC) Will Restate
Inphonic, Inc. (INPC) Washington, D.C. based Inphonic, Inc., along
with its subsidiaries, operates as an online seller of wireless services
in the United States. The Company announced on April 3, 2007, that
it is restating its financials due to improper revenue recognition.
Investors who purchased stock since November 2006 and April 2, 2007
are affected.
Occam Networks (NASDAQ: OCNW) Won’t File Its Annual Report
Occam Networks NASDAQ: OCNW) Santa Barbara-based Occam
Networks, Inc. engages in the design, development, and marketing of
broadband loop carrier networking equipment that enables telephone
companies to deliver voice, data, and video services.
On April 3, 2007, Occam Networks Inc. disclosed that it would not file
its Annual Report on Form 10-K for the year ended December 31, 2006
because the Company’ Audit Committee was reviewing its revenue
recognition concerning its commitment to provide service to its customers
after the sale of network equipment to Company customers. It
appears that investors who purchased stock between April 5, 2006
and April 2, 2007, are affected.
We are investigating the situations discussed above and if you are an
affected investor in any of these cases or the other cases listed below
under investigation, you may wish to contact us at info@securitiesleuth.com
or 877 511 4717. More information re these cases is available at
http://securitiessleuth.typepad.com
or at www.securitiessleuth.com.
Other cases under investigation are:
Beazer Homes (NYSE: BZH)
Coast Financial Holdings (NASDAQ: CFHI)
CTS Corporation (NYSE: CTS)
Gulf Island Fabrication, Inc. (NASDAQ: GIFI)
LECG Corporation NASDAQ: (XPRT)
Monster Worldwide, Inc. (NASDAQ: MNST
Nutrisystem (NNASDAQ: NTRI)
RadioShack (NYSE: RSH)
Shuffle Master, Inc. (NASDAQ: SHFL)
Usana Health Sciences (USNA)
Wells Real Estate Investment Trust, Inc. NASDAQ: WLRE)
Wireless Facilities, Inc. (NASDAQ: WFII)
WorldSpace, Inc. NASDAQ: WRSP)
Now with respect to securities cases that have recently settled. If you
are an affected investor – you purchased any of these stocks during
the relevant class period, you may wish to contact the claims administrator
to obtain additional information. Remember, if you don’t submit your
claim form, you won’t receive your share of any settlement.
Catalina Marketing Corp. (POS)
Class Period: October 14, 1999 to August 25, 2003
Claim Deadline: May 21, 2007
Claims Administrator: Gilardi
Spear & Jackson, Inc. (SJCK)
Class Period: February 1, 2002 to April 1, 2003
Claims Deadline: June 26, 2007
Claims Administrator: Garden City
Information regarding other recent settled cases, including the cases
listed below can be found at www.securitiessleuth.com.
Winstar Communications (WCII)
Ibis Technology Corp. (IBIS)
Astropower, Inc. (APWR)
Again you should contact the claims administrator (rather than us).
However, if you are an affected investor in any of the companies
under investigation, you many wish to contact us so that you can
consider your options.
Likewise, if you happen to be aware of corporate restatements or
other financial fraud -- especially if you're a victim -- you're encouraged
to contribute to the Sleuth by giving your own tip-offs at
http://securitiessleuth.typepad.com
or by e-mailing
info@securitiessleuth.com.
You can also call Mark McNair at
877-511-4717. If you have a friend or colleague you think would
benefit from The Sleuth, please pass along this issue and ask
them to sign up at www.cartville.com/app/join.asp?MerchantID=47994/
Warmest regards,
Mark McNair
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