Murray, Frank & Sailer LLP Files Class Action Lawsuit Against Immersion Corporation

October 29, 2009 6:24 PM EDT

NEW YORK--(BUSINESS WIRE)-- Murray, Frank & Sailer LLP has filed a class action complaint, in the Northern District of California, against Immersion Corporation ("Immersion" or the "Company") (Nasdaq: IMMR) and certain of its officers and directors, on behalf of shareholders who purchased Immersion securities between May 3, 2007, and July 1, 2009, inclusive.

The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 by making false and/or misleading statements and/or failing to disclose: (1) that the Company overstated its income tax expense; (2) that the Company improperly recognized revenue; (3) that, as a result, the Company's revenue, accounts receivable, and financial results, were overstated during the Class Period; (4) that the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles; (5) that the Company lacked adequate internal and financial controls; and (6) that as a result of the above, the Company's financial statements were materially false and misleading at all relevant times.

On July 1, 2009, before the market opened, the Company issued a press release announcing that the Audit Committee of the Company's Board was conducting an internal investigation into certain previous revenue transactions in its Medical line of business. On this news, Immersion's stock dropped over 23% from a close of $4.94 per share on June 30, 2009, to a close of $3.80 per share on July 1, 2009.

If you are a member of the class described above, you may move the Court, not later than November 2, 2009, to serve as Lead Plaintiff for the class. A Lead Plaintiff is a representative chosen by the Court who acts on behalf of other class members in directing the litigation. You do not need to be a Lead Plaintiff to be included in the class. If you purchased Immersion securities and wish to discuss this litigation, or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact us.

    Source: Murray, Frank & Sailer LLP

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