IFO Citigroup Inc. Spx Lasers

WASHINGTON, June 13 /PRNewswire/ -- Klafter & Olsen LLP has filed a class action complaint against InfoSonics Corporation ("InfoSonics") (AMEX:IFO) in the U.S. District Court for the Southern District of California on behalf of investors who purchased the publicly traded securities of InfoSonics during the period from May 9, 2006 through and including June 9, 2006 (the "Class Period"). The complaint alleges that InfoSonics and its top officers engaged in a scheme to defraud InfoSonics investors in violation of the federal securities laws by reporting false financial results on May 8, 2006 for its first quarter ended March 31, 2006. Specifically, the Complaint alleges that defendants knew, or with deliberate recklessness disregarded, that the Company had improperly accounted for warrants issued in connection with a January 2006 private placement which enabled it to report net income of $1.738 million for that quarter. Before the market opened on Monday, June 12, 2006, InfoSonics shocked the market when it disclosed that it would need to restate its previously reported net income for the first quarter down to $1.173 million, a decrease of 32.5%, due to the improper accounting treatment of the warrants. InfoSonics stock immediately plunged more than 28% that day on extraordinarily high volume. The Complaint further alleges that, while in possession of material nonpublic information concerning InfoSonics accounting for the warrants, defendants sold massive amounts of their personal holdings between May 11, 2006 and June 7, 2006 for proceeds exceeding $3 million. Indeed, as the Company admitted in a Form 8-K filed on June 12, 2006 with the SEC, InfoSonics had determined by Monday, June 5, 2006 that it would need to restate its previously reported financial results because it had improperly accounted for the warrants. Nevertheless, its Chief Financial Officer and the President of the Company's Latin American operations continued to sell their personal InfoSonics stock even after that determination. If you purchased InfoSonics publicly traded securities during the Class Period (May 9, 2006 - June 9, 2006), you may, no later than August 14, 2006, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. If you have sustained losses on your purchases of InfoSonics publicly traded securities during the Class Period, please contact Klafter & Olsen LLP at http://www.klafterolsen.com/ or call us at 202/261-3553 for a more thorough explanation of the Lead Plaintiff selection process and the claims asserted against InfoSonics. Klafter & Olsen LLP has offices in Washington D.C. and New York. The founding partners have over thirty years combined experience representing plaintiffs and defendants in a wide variety of litigation matters including securities, antitrust, corporate governance, commercial, Title VII, trespass, constitutional, and consumer actions. Please visit our website for more information about the Firm. DATASOURCE: Klafter & Olsen LLP CONTACT: Kurt B. Olsen of Klafter & Olsen LLP, +1-202-261-3553 Web site: http://www.klafterolsen.com/

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