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Case ID: 4341 | Stocks | 07/12/2005
A class action has been filed against PEMSTAR, Inc. (NasdaqNM:PMTR), certain of its officers and directors by stockholders who purchased the company's common stock between January 29, 2003 and January 24, 2005. 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.
According to a press release dated June 16, 2005, the complaint charges PEMSTAR and certain of the Company's executive officers with issuing materially false and misleading financial statements to the investing public regarding the Company's financial condition and outlook in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b 5 promulgated thereunder. PEMSTAR is a provider of electronics manufacturing services to OEMs in the communications, computing, data storage, industrial and medical equipment markets. Specifically, the complaint alleges that during the Class Period defendants issued numerous positive statements that misrepresented the true financial status of the Company and its business prospects. In fact, throughout the Class Period, PEMSTAR suffered from extensive liquidity constraints that inhibited the Company's ability to achieve the necessary gross margin expansion that was required for the Company to create and sustain accounting profits. The Complaint alleges that the defendants failed to disclose that the Company needed gross margins of at least 9% in order to achieve profitability, a level which defendants knew it was years away from attaining, if ever. Moreover, defendants further misrepresented the Company's financial condition by understating its liabilities associated with its Mexican facilities and overstating the Company's accounts receivables which had become materially impaired. The complaint alleges that, in part, defendants carried out the fraudulent scheme in order to revive and strengthen the Company's image, as perceived by its customer base, and enable the Company to raise much needed capital through the issuance of its common stock to the public at levels advantageous to the Company. The complaint further alleges that on or around January 24, 2005, the Company issued a press release announcing that it was revising its outlook for the fiscal 2005 third quarter, implementing additional cost-reduction initiatives and restating its financial results for its fiscal year ended March 31, 2004, due to accounting discrepancies at its Mexico facility. By the time the Company made this disclosure, the Company's common stock had declined nearly 70% from its Class Period high. If you bought PEMSTAR, Inc. securities between January 29, 2003 and January 24, 2005, inclusive, and would like to obtain information about the lawsuit, then you are invited to call (866) 467-1400 to speak with an attorney. 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 Omnicare, Inc. (OCR), certain of its officers and directors by stockholders who purchased the company's common stock between August 3, 2005 and January 27, 2006. 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 Taser International Inc. (NASDAQ: TASR), an AZ based manufacturer of Taser guns, and certain of its officers and directors by stockholders who purchased the company's common stock between November 4, 2004 and January 6, 2005. 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 Radiation Therapy Service, Inc., (NASDAQ: RTSX) and certain of its officers and directors by stockholders who purchased the company’s common stock between June 17, 2004 and September 8, 2004. The Company owns, operates and manages treatment centers, focused on providing comprehensive radiation treatment alternatives ranging from conventional external beam radiation to newer, technologically advanced options. 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 Molson Coors Brewing Company , certain of its officers and directors by stockholders who purchased the company's common stock between July 22, 2004 and April 27, 2005. 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. Several class actions have been filed against Eaton Vance Corporation, Inc. (NYSE: EV), Eaton Vance Management, Boston Management and Research, Lloyd George Investment Management (B.V.I.) Limited, and Lloyd George Investment Management (Bermuda) Limited and certain individuals by investors who purchased the shares of Eaton Vance mutual funds between January 30, 1999, to November 17, 2003. The actions claim that the defendants violated federal securities laws by drawing upon the assets of the Eaton Vance Funds to pay brokers to aggressively push Eaton Vance Funds over other funds, and concealing those payments from investors by disguising them as brokerage commissions. Litigation is ongoing in several consolidated class actions filed against scrap iron company Philip Services Corporation (Pink Sheets:PPSVF.PK), certain of its officers and directors, and affiliated accounting firms by stockholders who purchased the company's common stock between February 28, 1996, and May 7, 1998. The actions claim 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. |
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