DZS ($DZSI) Investor Settlement
DZS ($DZSI) has reached a settlement with investors to resolve claims that it improperly recognized revenue on customer contracts.
Outline
In 2022 and early 2023, DZS said it had effective internal controls and reliable financial reporting. On June 1, 2023, it disclosed it would restate results due to revenue recognition errors, and $DZSI fell nearly 36%. Investors sued, and the parties settled in 2025.
Timeline
March 10, 2023: DZS files its Form 10-K stating its internal controls over financial reporting were effective.
June 1, 2023: DZS announces it will restate financials from Q1 2022 through Q1 2023 due to revenue recognition errors.
June 1, 2023: $DZSI drops nearly 36% following the restatement announcement.
June 2023: Investors file a securities class action alleging misleading financial disclosures.
December 2025: The parties reach a tentative settlement to resolve investor claims.
Background:
DZS provides network access solutions for broadband and telecommunications companies.
Investors point to DZS’s public statements about effective internal controls and dependable financial reporting, including statements made in the company’s March 10, 2023 annual report.
On June 1, 2023, DZS said it would restate financial results from Q1 2022 through Q1 2023 due to errors in how it recognized revenue on customer contracts. Investors allege this disclosure showed the company’s earlier assurances about controls and reporting were not accurate.
After the restatement announcement and stock drop, investors filed a securities class action asserting they were harmed by the alleged misstatements and omissions. In 2025, the parties reached a tentative settlement to resolve the case.
What Can Investors Expect Now?
DZS ($DZSI) has reached a settlement with investors to resolve claims that it improperly recognized revenue on customer contracts.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section.
Frequently Asked Questions
all persons and entities that purchased DZSI common stock between May 4, 2022 to November 9, 2023, both dates inclusive.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.21 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $0.84 per share.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.