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DZSI.US
id: 760

DZS ($DZSI) Investor Settlement

The parties have reached an agreement to settle the case, but the terms are still being finalized. You can submit your application now, and it will be processed once claims filing opens.
E.D. Texas
Court
4:23-cv-00549
Case number
05/04/2022
Class period Start
11/09/2023
Class period End
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.
Case Type
US Securities Class Action
Case Status
Tentative Settlement
Alleged Offence
Misleading Statements, 
Financial Misrepresentation, 
Failure to Disclose, 
Negligence, 
Omissions
Suspected Party
Directors, 
Management, 
Service Provider
Security Type
Stocks
Trade Direction
Long
Filing date
06/14/2023
Lead Plaintiff Deadline
08/14/2023
Plaintiffs
JASON SHIM
Attorneys
Rosen Law Firm,
Trades matching type
FIFO

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