The U.S. District Court for the Northern District of California has dismissed a shareholder class-action lawsuit filed against some members of VeriFone Systems Inc.’s board of directors in 2007, according to the San Jose, Calif.-based terminal maker.
The suit stemmed from a December 2006 company admission that accounting errors required the restating of results for the first three quarters of fiscal 2007 (
At that time, Douglas G. Bergeron, VeriFone CEO, said the company’s accounting system did not automatically input the value of inventory moving between VeriFone locations in Singapore; Sacramento, Calif.; and Tel Aviv, Israel. As such, someone had to manually post the numbers, Bergeron said.
That procedure was correct and required, but it was after someone incorrectly determined that direct shipments also had to be manually entered that the errors surfaced, Bergeron said. The double entries were not found until VeriFone’s annual audit in 2007.
The dismissal order, issued Aug. 26, means the suit cannot be amended and filed again, San Jose, Calif.-based VeriFone says.
“We are extremely pleased with the court’s ruling, as we believed from the beginning that this case had no foundation,” Bergeron said in a statement. “We believe the court properly recognized the right of the board of directors to manage the company’s affairs.”
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