The action against the company and current and former senior managers is being organised by New York- based The Rosen Law Firm for shareholders who bought stock from June 30, 2003 to April 26, 2006.

Earlier this week the company shocked the market when it revealed that as a result of an ongoing internal investigation, its "reported financial statements for the three months ended December 31, 2005 and three years ended September 30, 2005 and possibly earlier periods should not be relied upon."

It added additional issues have arisen concerning practices at the company “in connection with credits issued to or requested by customers (for returned products or otherwise) and the related accounting treatment, as well as the application of payments received to the proper accounts receivable."

Following this revelation the company’s stock price fell an additional 27 percent.

Previously Vitesse said it had put on "administrative leave” founder and current CEO Louis Tomasetta, the CFO Yatin Mody, and executive Vice President Eugene Hovanec.