Stockholders v Aerosonic Corporation
Stockholders Hold Aerosonic Corporation’s Feet to the Fire for Misrepresentations
Several class actions have been filed against aviation instrument maker Aerosonic Corporation (Amex: AIM) and certain of its officers and directors by stockholders who purchased the company's common stock between May 3, 1999, and March 17, 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.
The action alleges that, throughout the class period, the defendants issued numerous statements and filed quarterly and annual reports with the SEC which described the Aerosonic's financial performance. These statements were misleading because they failed to disclose or misrepresented the following adverse facts, among others: (1) that Aerosonic had falsified its inventory records and improperly recognized revenues; (2) that the company's financial returns were in violation of Generally Accepted Accounting Procedures; (3) that Aerosonic lacked adequate internal controls and was therefore unable to ascertain its true financial condition; and (4) that as a result, the value of the company's net income and financial results was overstated at all relevant times.
On March 17, 2003, Aerosonic announced that it had discovered what appeared to be certain discrepancies which pertain to previously reported financial information concerning inventory accounting and revenue recognition. The market reacted swiftly to this news, with Aerosonic stock falling 24%, or $3.32 per share from a high of $13.32 per share on March 17, 2003, to close at $10.10 per share on March 18, 2003.
If you bought Aerosonic publicly traded securities from May 3, 1999, to March 17, 2003, and you wish to serve as lead plaintiff, you must request appointment by the court no later than January 13, 2004. Any member of the purported class may request appointment by the court to serve as lead plaintiff counsel of their choice, or may choose to do nothing and remain an absent class member.
