ATLANTA, July 25, 2001 (PRIMEZONE) -- You are hereby notified that the Atlanta law firm of Holzer & Holzer filed a class action lawsuit today on behalf of purchasers of the securities of Scientific-Atlanta, Inc. ("Scientific-Atlanta" or the "Company") (NYSE:SFA) between April 19, 2001 and July 2001, inclusive (the "Class Period").
The action against defendants Scientific-Atlanta, Wallace G. Haislip and James F. McDonald is pending in the United States District Court, Northern District of Georgia, Atlanta Division, located at the United States Courthouse, 75 Spring Street, S.W., Atlanta, GA 30303.
The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between April 19, 2001 and July 19, 2001, thereby artificially inflating the price of Scientific-Atlanta securities. Specifically, throughout the Class Period, the complaint alleges that defendants issued materially false and misleading information with regard to the financial results of its fiscal third quarter. For example, the complaint alleges that on May 11, 2001, in a Form 10-Q that was filed with the Securities and Exchange Commission, the Company reported its financial results and highlighted an increase in production capacity of set-tops.
Furthermore, the complaint alleges that on July 19, 2001, Scientific-Atlanta reported its financial results for the fiscal fourth quarter of 2001 and shocked the market by reporting a 21% decline in bookings from the previous year's fourth quarter. The complaint alleges that this decline in bookings was attributable to, among other things, a surplus in customer inventory levels, which defendants knew, or should have known, at the time they filed the Company's Form 10-Q on May 11, 2001, making the representations in the Form 10-Q regarding production capacity materially false and misleading. Additionally, the complaint alleges that when the Company announced that it was revising its earnings estimates for the first quarter of fiscal 2002, the market reaction to this announcement was immediate and severe in that shares of Scientific-Atlanta plummeted by more than 34%, or $12.08, to close at $23 per share, on heavy trading volume.
If you bought the securities of Scientific-Atlanta between April 19, 2001 and July 19, 2001, you may, no later than September 24, 2001, request that the Court appoint you as a lead plaintiff. 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, however, you must meet certain legal requirements.
If you have any questions about your rights with respect to this lawsuit, you may contact HOLZER & HOLZER, Corey D. Holzer, Esq. (toll-free) at (888) 508-6832 or (404) 847-0085, or you may inquire via e-mail to holzerlaw@aol.com. Holzer & Holzer is an Atlanta, Georgia law firm that concentrates its practice in the area of complex litigation. Specifically, the firm's practice focuses on shareholder class action litigation and shareholder derivative actions. The firm currently is plaintiffs' counsel in more than seventy (70) shareholder class or derivative actions pending in various federal and state courts through the United States. The firm is plaintiffs' co-lead counsel in several of these cases and has played significant roles in various others. The firm prides itself on zealous advocacy, efficiency and professionalism in the prosecution of its cases.
If you have any questions about your rights with respect to this lawsuit, you may contact HOLZER & HOLZER, Corey D. Holzer, Esq. (toll-free) at (888) 508-6832 or (404) 847-0085, or you may inquire via e-mail to holzerlaw@aol.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca