NEW YORK, Nov. 7, 2008 (GLOBE NEWSWIRE) -- The Brualdi Law Firm, P.C. announces that a lawsuit has been commenced in the United States District Court for the Northern District of California on behalf of a class consisting of all persons or entities who purchased or otherwise acquired the securities of Cadence Design Systems, Inc. ("Cadence" or the "Company") (Nasdaq:CDNS), between April 23, 2008 and October 22, 2008, inclusive (the "Class Period").
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased Cadence common stock during the Class Period, and wish to move the court for appointment of lead plaintiff, you must do so by December 29, 2008. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. The lead plaintiff will be selected from among applicants claiming the largest loss from investment in the Company during the Class Period. You do not need to seek appointment as a lead plaintiff in order to share in any recovery.
To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Sue Lee at The Brualdi Law Firm, P.C. 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1187 or (212) 952-0602, by email to slee@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com.
On October 15, 2008 Cadence's stock declined more than 15% after the Company disclosed that Michael Fister had resigned as President, Chief Executive Officer, and director of the company, and that four other Cadence executives had also resigned. Thereafter, on October 22, 2008 Cadence shocked investors when it delayed the announcement of its third-quarter financial results and disclosed that Cadence was reviewing, in conjunction with the Company's independent accountants and legal advisors, the recognition of revenue related to customer contracts signed during the first quarter of 2008. Cadence revealed that the Company initiated the review after preliminarily determining during its regular review of its third quarter results that approximately $24 million of revenue relating to these contracts was recognized during the first quarter of 2008, but should have been recognized ratably over the duration of the contracts commencing in the second quarter of 2008. Cadence further disclosed that, as a result, Cadence expects to restate its financial statements for the first quarters of 2008 and the first half of 2008 to correct the revenue recognition with respect to these contracts. On this news, shares of Cadence declined $1.10 per share, more than 25%, to close on October 23, 2008 at $3.22 per share, on unusually heavy volume.