Securities Fraud Lawyer - PictureTel Corporation Securities Litigation

A settlement was reached with Picturetel for $12 million. The complaint alleged that defendants overstated net income, revenues, and earnings per share by recognizing revenue in violation of standard accounting principles and PictureTel's stated revenue recognition principles. Specifically, defendants improperly recognized revenue for products that were not shipped to customers during the quarter in which the revenue was recognized, from products shipped to customers who had the unilateral right to return products, and from products shipped to customers subject to contingent liabilities, payment contingencies, or payment uncertainties.