Stockholders v Concord Camera Corporation
Stockholders Didn’t Get Picture Perfect View of Concord Camera’s Financial Picture
A class action has been filed against Concord Camera Corporation, a worldwide designer, developer, manufacturer and seller of image capture products (NASDAQ: LENS) and certain of its officers and directors by stockholders who purchased the company's common stock between August 14, 2003 and May, 10, 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.
Specifically, the complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company's inventory levels were materially inflated (2) the Company's financial results were materially impacted by the significant inventory provisions, ranging from $6 to $7 million; (3) the Company's net loss was artificially deflated through the application of manufacturing labor and overhead costs to inventory; and (4) that as a result, the Company's financial results were materially inflated at all relevant times.
On May 11, 2004, Concord announced that it would file Form 12b-25 with the SEC extending the Company's time to file a Form 10-Q for the period ended March 27, 2004. News of this announcement caused Concord's stock to fall $1.58 per share or 34.20 percent to close at $3.04 per share.
