Telecommunications software maker DZS Inc. was hit with a proposed class action alleging the company, CEO, and CFO defrauded shareholders by making misleading statements about its internal financial reporting tools.
The company allegedly didn’t disclose ongoing issues with revenue recognition in its 2022 annual report or its report for the first quarter of 2023, according to the complaint filed by Jason Shim in the US District Court for the Eastern District of Texas on Wednesday.
The annual report mentioned a fourth quarter sales agreement “subject to unique delivery terms” that led to a deficiency in documenting and reviewing revenue from ...
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