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Case ID: 2540 | Stocks | 07/12/2004
A class action has been filed against certain of the officers and directors of now-bankrupt magnetic recording head supplier Read-Rite Corporation (Pink Sheets: RDRTQ, formerly Nasdaq: RDRT) by stockholders who purchased the company's common stock between October 30, 2001, and June 6, 2003. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock.
Read-Rite filed for Chapter 7 bankruptcy on June 17, 2003. The stockholders allege that the true facts that were known to each of the defendants, but concealed from the investing public, during the time period involved were as follows: 1. The company's 40 GB-platter inventory was overstated by $16.7 million. 2. The company's Philippine real estate holdings were overstated by approximately $6.8 million. 3. The company needed to restructure its operations and the associated charges would cost the company more than $20 million and would cause an earnings shortfall in later quarters. 4. The company's second-quarter fiscal year 2003 loss was grossly understated. 5. The company was experiencing massive technical problems associated with its 40G-platter programs. Moreover, the company was experiencing these problems well before January 2002 and beyond April 2002 when the defendants claimed the problems were fixed. 6. The company was underfunded and could not complete the production of its 80GB programs. At Lawcash.com, it is our goal to keep you informed about important legal cases, class actions and settlements. Our lawyers offer free legal evaluations in tort cases, class actions, personal injury, and other lawsuits because we are dedicated to helping you resolve your legal complaints. Other Stocks Cases of Interest A class action has been filed against Marsh and McLennan Companies, Inc. (NYSE: MMC) and certain of its officers and directors by stockholders who purchased the company’s common stock between October 15, 1999 and October 14, 2004. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company’s securities. The stockholder seeks to recover compensatory damages for the loss of value of their stock. The parties have reached a $20 million settlement in an administrative proceeding filed by the SEC against subsidiaries of Conseco, Inc. (CIHC, Inc., Conseco Services, LLC, and Conseco Equity Sales, Inc.), and the company to which Conseco sold its variable annuity business in 2002, Inviva, Inc., and its subsidiary Jefferson National Life Insurance Company. The action alleged that the insurance companies facilitated market timing of mutual funds through the sale of variable annuities, harming investors who purchased variable annuity products from the companies. Persons eligible to take part in the settlement should contact the attorneys who prosecuted the case for more information. A class action has been filed in the Southern District Court of New York against the Open Joint Stock Company (NYSE: VIP) and certain of its officers and directors by stockholders who purchased the company's common stock between March 24, 2004 and December 8, 2004. The Company, also known as Vimpel Communications or Vympel Communicatii, operates under the 'Bee Line GSM' brand in Russia and 'K-mobile' and 'EXCESS' brands in Kazakhstan. VimpelCom is recognized for introducing two digital cellular communications standards in Russia.
The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company's securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. A class action has been filed against Dura Pharmaceuticals, Inc. (formerly Nasdaq: DURA) and certain of its officers and directors by stockholders who purchased the company's common stock between April 15, 1997, and February 24, 1998. A class action has been filed against logistics provider Stonepath Group Inc. (AMEX: STG) and certain of its officers and directors by stockholders who purchased the company’s common stock between May 7, 2003 and September 20, 2004. The action claims that the defendants violated federal securities laws by issuing a series of material misrepresentations to the market over this time period, thereby artificially inflating the price of the company’s securities. The stockholders seek to recover compensatory damages for the loss of value of their stock. A class action has been filed against bank holding company North Country Financial Corporation (Nasdaq: NCFC) and certain of its former officers by stockholders who purchased the company's common stock between November 13, 2000, and April 15, 2003. |
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