Accuray Incorporated (Public, NASDAQ:ARAY) faces a securities class action lawsuit on behalf of investors in ARAY, who purchased shares between Feb. 07, 2007 and Aug. 19, 2008. An investigation on behalf of current long term investors in Accuray Incorporated (Public, NASDAQ:ARAY) over potential shareholder claims was announced.
Recently an investor in Accuray Inc (Public, NASDAQ:ARAY) has filed a proposed securities class action lawsuit in investor in the United States District Court for the Northern District of California on behalf of purchasers of Accuray Inc.(NASDAQ:ARAY) common stock pursuant or traceable to Accuray s Initial Public Offering (the IPO) on or about February 7, 2007, as well as purchasers of Accurays common stock between February 7, 2007 and August 19, 2008 over alleged violations of Federal Securities Laws by Accuray and others.According to the complaint the plaintiff alleges that Accuray Inc and certain of its officers and directors violated the Securities Act and the Exchange Act.
By misrepresenting and failing to disclose between February 7, 2007 and August 19, 2009 material information concerning the quality and realistic likelihood of fulfillment of contracts in Accurays backlog, a figure representing the direct revenue that Accuray expects to receive from the sale and servicing of the CyberKnife system. Then on August 19, 2008, Accuray announced its fiscal fourth quarter and full year 2008 financial results for the period ended June 28, 2008 in a press release titled Accuray Announces Results for the Fourth Quarter and Fiscal Year End 2008; 28 New Contracts Valued at $115.5 Million Signed in Fourth Quarter. That same day, Accuray held a conference call with analysts and reiterated the financial results in the press release and revealed that Accuray removed another $39 million from backlog, so the lawsuit. Thus, Accuray removed approximately $127 million in backlog during the last three quarters of fiscal 2008.
Accuray Incorporated, located in Sunnyvale, California, has developed an intelligent robotic radiosurgery system, the CyberKnife system, designed to treat solid tumors anywhere in the body as an alternative to traditional surgery. The CyberKnife system represents the next generation of radiosurgery systems, combining continuous image-guidance technology with a compact linear accelerator (linac) that has the ability to move in three dimensions according to a patients treatment plan. Accuray reported in 2007 Total Revenue of $140.45million and in 2008 Total Revenue of $210.38million with an Net Income of $5.38million. Shares of Accuray Incorporated (Public, NASDAQ:ARAY) traded recently at $6.52 per share, down from a 52weekHigh of $9.08 per share and $17.83 per share in early 2008.