LITTLE ROCK, Ark., Dec. 21, 2001 (PRIMEZONE) -- The Law Firm of Cauley Geller Bowman & Coates, LLP announced today that a class action has been filed in the United States District Court for the Eastern District of Kentucky on behalf of purchasers of Lexmark International, Inc. ("Lexmark" or the "Company") (NYSE:LXK) common stock during the period between March 20, 2001 and October 22, 2001, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at http://www.classlawyer.com/pr/lexmark.pdf.
The complaint charges Lexmark and certain of its officers and directors with issuing a series of material misrepresentations to the market, thereby artificially inflating the price of Lexmark common stock. Specifically, the complaint alleges that throughout the Class Period, defendants made highly positive statements regarding the Company's financial results, including strong sales and growth of its printers. Despite unprecedented competition in the industry, Lexmark seemed to be immune from market conditions, reporting quarter after quarter of strong financial growth. Unbeknownst to the investing public, Lexmark was plagued with an increasing backlog of unmarketable inventory which defendants failed to properly account for in Lexmark's publicly reported financial results, causing the Company's financial results to be overstated by at least $25 million during the Class Period. The complaint alleges that by failing to timely take a charge to earnings for the unmarketable inventory, defendants and other Lexmark insiders were able to divest themselves of thousands of Lexmark shares at prices well above $60 per share, generating proceeds of over $8,000,000.
On October 22, 2001, defendants finally revealed the truth, indicating that Lexmark would record a $25 to $35 million inventory write-down in the fourth quarter of fiscal year 2001, and that Lexmark would have to undergo a major restructuring in order to maintain its competitiveness. In addition, instead of generating between 70-80 cents in earnings per share for the fourth quarter of 2001, a figure defendants repeatedly emphasized Lexmark would reach, defendants were forced to drastically revise its fourth quarter earnings' guidance. As revealed on October 22, 2001, defendants expected only 40-50 cents in earnings per share for the fourth quarter of 2001 -- a far cry from what analysts and the investing public were led to expect. In response to the unexpected news, Lexmark's stock declined by over 11% to close at $44.77 per share, on extraordinarily high trading volume.
If you bought Lexmark common stock between March 20, 2001 and October 22, 2001 inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than January 28, 2002. If you are a member of this class, you can join this class action online at http://www.classlawyer.com/sign_up.html. Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller Bowman & Coates, LLP or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Cauley Geller Bowman & Coates, LLP has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Florida, Arkansas and California, but represents investors throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at www.classlawyer.com.
CAULEY GELLER BOWMAN & COATES, LLP Investor Relations Department: Jackie Addison, Sue Null or Shelly Nicholson P.O. Box 25438 Little Rock, AR 72221-5438 Toll Free: 1-888-551-9944 E-mail: info@classlawyer.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.