A U.S. appeals court has reversed the dismissal of a shareholder class action lawsuit brought against VeriFone (PAY) in the wake of its 2007 earnings restatement of three quarters from that year, the company announced in a Securities and Exchange Commission filing.
In 2007, the restatement sent VeriFone's stock and market value tumbling.
A 152-page deposition that VeriFone chief Douglas Bergeron voluntarily gave to the SEC, and that American Banker previously acquired, shows that SEC attorneys confronted Bergeron with a cache of emails relating to his involvement in discussions about the company's financial reporting prior to the erroneous statements.
At the time, VeriFone expected to earn 36.5 cents a share for a period that was not specified in the transcript. In a separate and unrelated email, Bergeron told colleagues that if the company didn't hit a certain number, "the party would be over big time for us," according to messages cited in the deposition.
In 2009, the SEC came to a settlement with VeriFone. VeriFone's chief financial officer, Barry Zwarenstein, resigned. Bergeron relinquished the chairmanship shortly after the episode.