Polycom, Inc. Sued by Investor
Robbins Arroyo LLP announce that an investor of Polycom, Inc. (NASDAQ: PLCM) (“Polycom”) has filed a complaint in the U.S. District Court for the Northern District of California. The complaint alleges that the company and certain of its officers and directors violated the Securities Exchange Act of 1934 between July 24, 2013 and July 23, 2013 (the “Class Period”). Polycom offers video, voice, and content-management and content-sharing solutions, such as telepresence and conference room systems, home/work office solutions, applications for mobile devices, browser-based video collaboration, and specialized healthcare video carts.
Polycom Is Accused of Making False and Misleading Statements
According to the complaint, certain Polycom officers and directors made false and/or misleading statements and/or failed to disclose information regarding the company’s business, operational, and compliance policies. Specifically, the complaint alleges that, throughout the Class Period, the company and certain of its officers and directors misrepresented and/or failed to disclose that the company did not maintain adequate internal controls over its business operations. In the absence of adequate internal controls, the complaint alleges that Polycom’s Chief Executive Officer (“CEO”), Andrew M. Miller, violated the company’s code of conduct by submitting irregular and suspect expense reimbursements. As a result of these false and misleading statements and omissions, Polycom shares traded at artificially inflated prices during the Class Period.
Polycom Stock Price Drops on News of CEO’s Resignation
On July 23, 2013, according to the complaint, Polycom announced the resignation of Mr. Miller as CEO, President, and a director following the discovery of irregularities in Mr. Miller’s expense reports. On this news, Polycom shares dropped 15%, or $1.68 per share, to close at $9.50 on July 24, 2013.
If you invested in Polycom and would like to discuss your shareholder rights, please contact attorney Darnell R. Donahue at (800) 350-6003 or you can complete the form below and we will contact you directly.