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Case ID: 5213 | Stocks | 11/06/2008
According to a press release dated October 29, 2008, the Complaint alleges that throughout the Class Period defendants knew or recklessly disregarded that their public statements concerning defendant's business, operations and prospects were materially false and misleading. Specifically, the Complaint alleges that defendants' public statements were false and misleading or failed to disclose or indicate the following:(1) that the defendant's orders and sales were slowing; (2) slowing sales were causing the defendant's inventory of outdated machinery to grow; (3) that the Company failed to timely record an impairment in the value of its inventory; (4) as a result, the Company's financial results were materially inflated; and (5) that the Company lacked adequate internal controls.
On February 21, 2008, the defendant shocked investors when it revealed that in the fourth quarter of the fiscal year ending December 31, 2007, the defendant experienced a combination of prior period accounting adjustments and the negative impact of operational initiatives to reduce inventory which contributed to an unexpected loss in the fourth quarter of 2007. The defendant's fourth quarter and full year 2007 earnings reflected a significant and unexpected reduction in the Company's gross margin as a result of: prior period accounting adjustments related to inter-company profits in inventory elimination and accounts payable which were recorded in the fourth quarter of 2007; the rebalancing of production volumes in the Company's United States and Taiwan production facilities to address current market demand for certain products and to reduce inventory; higher price discounting related to plans to reduce finished machine inventories and accelerate the phase-out of older product lines, and product and channel mix changes. Moreover, the defendant announced plans to lower inventory by $20 million and to discount inventory of older product lines, both of which would continue to constrain the Company's margins during the 2008 fiscal year. On this news, the defendant's shares declined $4.16 per share, or 25.43 percent, to close on February 21, 2008 at $12.20 per share, on unusually heavy trading volume.
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 According to a press release dated April 02, 2008, the complaint charges Candela and certain of its officers and directors with violations of the Securities Exchange Act of 1934 (the “Exchange Act”). Candela engages in the development and commercialization of laser and light-based systems that allow physicians and personal care practitioners to treat various cosmetic and medical conditions worldwide.
A class action has been filed against Terayon Communication Systems, Inc. (TERN), certain of its officers and directors by stockholders who purchased the company's common stock between October 28, 2004 and March 1, 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. Several class actions have been filed against offshore oil well services company Trico Marine Services, Inc. (Nasdaq:TMAR) and certain of its officers and directors by stockholders who purchased the company's common stock between May 6, 2003, and May 10, 2004. 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. Several class actions have been filed against Network Engines, Inc. (Nasdaq: NENG) and certain of its officers and directors by stockholders who purchased the company's common stock between November 6, 2003, and December 10, 2003. 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. The stockholders seek to recover compensatory damages for the loss of value of their stock. A class action has been filed in Delaware state chancery court against UnitedGlobalCom (Nasdaq:UCOMA) and certain of its officers and directors by stockholders. The action claims that the defendants violated federal securities laws in its handling of the merger with Liberty Media International, Inc. The stockholder seeks to recover compensatory damages for the loss of value of their stock. A class action has been filed against neonatal and perinatal physician services provider Pediatrix Medical Group, Inc. (NYSE: PDX) and certain of its officers and directors by stockholders who purchased the company's common stock between April 17, 2002, and June 23, 2003. |
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