According to Bloomberg News, shares of MagicJack VocalTec, Ltd. (NASDAQ: CALL) (the “Company”) were hammered after a blog post on the SeekingAlpha.com attributed to “Copperfield Research” said the company used “accounting gimmicks” to boost profits and have “presented its retail investor base with earnings press releases and financial tables that are overstated and later altered based on the corresponding SEC filings.” Former Chief Executive Officer Daniel Borislow denied the allegations of securities violations responded that the posting was “lies.”
According to SEC filings, MagicJack VocalTec Ltd. was created on July 16, 2010, in a reverse merger when VocalTec Communications Ltd. acquired all of the issued and outstanding ordinary shares of YMax Corporation, a privately held Delaware corporation, the West Palm Beach, Florida based creator of magicJack and other voice-over-Internet-Protocol (“VoIP”) products. The Company is currently involved in lawsuits with three telecommunications carriers concerningthe billing of access services according to their quarterly report filed on October 29, 2012.
Shares have fallen from their $17.31 closing price on January 8, 2013, to $14.82 on January 14, 2013, a loss of $2.49 per share.
