Virgin Mobile IPO earnings shrouded in scandal; sparks lawsuit

Tue, 04 Dec 2007 00:58:37 +0000

So, remember when Virgin Mobile went public and reported incredible earnings on their IPO? You know, the IPO where Virgin Mobile banked $412.5 million. Well, it seems that Virgin Mobile’s IPO performance was based on some slightly fudged information. And, by slightly fudged, we mean they misreported their Q3 earnings - which have been revised to reflect a $7.3 Million loss. The news of Virgin Mobile’s Q3 financial performance revision caused a 14.4% drop in shares. Presumably disgruntled investors have sparked a class-action investigation into Virgin Mobile’s ethics in this matter. But, to Virgin Mobile’s credit, they’ve issued a statement saying that the allegations of purposeful misreporting their financial data are “completely without merit.” Right, we’re sure the hundreds of millions of potential stock-earnings had nothing to do with the all-too-coincidental financial goof. Good thing this is America where you’re considered innocent until proven guilty. [Via RCRNews ] ---Related Articles at IntoMobile:Virgin Mobile USA files for IPOVirgin Mobile USA to increase IPO offering to $506 MillionVirgin Mobile USA raises $412 million; Market still cautious on MVNOsVirgin Mobile Australia sued for insinuating Texas teen's virginityVirgin Mobile USA partners with Facebook; Intros "My Mobile" app

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Virgin Mobile IPO earnings shrouded in scandal; sparks lawsuit