Stockholders v Lattice Semiconductor Corporation
Lattice Semiconductor Props Up Stock Prices by Questionable Accounting
Several class actions have been filed against technology company Lattice Semiconductor Corporation (Nasdaq:LSCC), and certain of its officers and directors by stockholders who purchased the company's common stock between April 22, 2003, and April 19, 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. The stockholders seek to recover compensatory damages for the loss of value of their stock.
The action alleges that Lattice Semiconductor issued materially false and misleading financial information to the investing public, understating its accounts payable balance and overstating earnings. On March 18, 2004, the company disclosed that it anticipated restating its first, second, and third quarter 2003 financial statements because it had overstated its Deferred Income Account. On March 24, 2004, it released its financial results for the fourth quarter and year end December 31, 2003, restating previously reported 2003 revenue by approximately 7% and increasing its net loss by $9 million.
On April 19, 2004, Lattice Semiconductor filed amended form 10-Qs for the first three quarters of 2003. Following the filing, the price of lattice stock fell from $8.95 on April 19, 2004, to close at $8.50 on April 30, 2004. The company's shares continued to fall after the news, trading in the range of $4.50 at the time this lawsuit was filed.
If you purchased securities issued by Lattice Semiconductor during the applicable period, you may request appointment by the court as a lead plaintiff if you do so by November 8, 2004. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that your claim is typical of the claims of other class members, and that you will adequately represent the class. Under certain circumstances, one or more class members may together serve as lead plaintiffs. Your ability to share in any recovery is not affected by the decision whether or not to serve as a lead plaintiff. You may retain any counsel of your choice to serve you in this action, or you may choose to do nothing, and remain in the class as a silent member.
