magicJack VocalTec (CALL) Securities Fraud Class Action Lawsuit

majicJack (CALL) securities fraud class action allegations

Short sellers are people or entities that sell stock short, profiting from a decrease in share price.   Generally not a friendly bunch.  The magicJack securities fraud class action stems from one of the most devastating short seller reports we have seen in years.  The report argues that majicJack engaged in systemic securities fraud that artifically inflated its stock price.  

Allegations that majicJack (CALL) systematically defrauded CALL shareholders

Here are the allegations:.  majicJack overstated revenue, earnings and cash flow in its SEC filings; (ii) majicJack overstated its cash balance by investing its shareholder cash in highly aggressive and unconventional securities; (iii) majicJack overstated its earnings by inconsistently treating its allowance for doubtful accounts and billing adjustments; (iv) majicJack improperly altered the estimated life of its assets, causing a decrease in its depreciation expense; (v) while majicJack claimed that it was writing down its excess inventory of chips, it instead wrote down finished products in order to hide weakening sales momentum; and (vi) as a result of the above, majicJack’s financial statements were materially false and misleading at all relevant times.

majicJack (CALL) Shareholders take a hit

majicJack has lost almost $220 million in market value from its 2013 highs.  A shareholder could be down as much as 40% in less than six months.  

majicJack (CALL) securities fraud class action investigation

We are investigating the underlying veracity of the allegations contained in this report.  Its author is a short sellor, so it may be biased, but the underlying points are well researched.  If you are a CALL shareholder, please complete the form on this page to learn more.