BALA CYNWYD, Pa., Feb. 20, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
A securities class action lawsuit pending in the U.S. District Court for the Southern District of Texas -- Houston Division claims that Hanover Compressor Company ("Hanover" or the "Company") (NYSE:HC) misled shareholders about its business and financial condition.
Plaintiff seeks damages for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (and/or the Securities Act of 1933) on behalf of all investors who bought Hanover Compressor Company securities between November 8, 2000 through January 28, 2002 (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 Hanover Compressor Company 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 certain of Hanover's officers and directors violated the Securities Exchange Act of 1934. The complaint charges that during the Class Period, defendants issued false and misleading statements, press releases, and SEC filings concerning Hanover's financial condition. These statements had the effect of artificially inflating the price per share of the Company's common stock and other securities.
The Company's true state of fiscal affairs was in fact substantially different than reported to the markets. On January 28, 2002, Hanover would reveal various investments and joint ventures for which it never recorded the investment amount or purchase price, but for which the Company recorded revenue from in order to bolster its claims of growth. Specifically, the true facts, which were known by the defendants during the Class Period but concealed from the public, were: (a) the $16 million in revenue and $2.6 million in net income recognized in Q3 and Q4 associated with the Hampton Roads fabrication project should not have been recognized; (b) the Registration Statement omits the Hampton Roads project and incorporates the Company's false and misleading Q3 and Q4 2000 financial results; and (c) the Company's financial statements for Q101 through Q301 were false in that the revenue and EPS were overstated and they failed to disclose the impact of the questionable Hampton Roads joint venture.
If you purchased Hanover Compressor Company securities between November 8, 2000 and January 28, 2002, you may be a member of the class and have until April 5, 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