BALA CYNWYD, Pa., Jan. 10, 2002 (PRIMEZONE) -- A pending class action charges Lexmark International, Inc. (NYSE:LXK) with misleading investors about the Company's financial results, including strong sales and growth of its printers according to the law firm of Schiffrin & Barroway, LLP.
The complaint was filed in the U.S. District Court for the Eastern District of Kentucky, Lexington Division (01-490-JMH). Plaintiff seeks damages for violations of the federal securities laws on behalf of all investors who purchased Lexmark International, Inc. securities between March 20, 2001 and October 22, 2001 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Lexmark International, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our Website at www.sbclasslaw.com.
The complaint alleges that the Kentucky-based Lexmark International, Inc. issued false and misleading statements to the public about 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. 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 response to the unexpected news, Lexmark International, Inc.'s stock declined by over 11% to close at $44.77 per share, on extraordinarily high trading volume.
If you purchased Lexmark International, Inc. securities during the period March 20, 2001 and October 22, 2001, you may be a member of the class and have until January 28, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our Website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.