NEW YORK, April 30, 2002 (PRIMEZONE) -- Pomerantz Haudek Block Grossman & Gross LLP (www.pomerantzlaw.com), which filed a class action lawsuit on behalf of purchasers of the common stock of Symbol Technologies, Inc. ("Symbol" or the "Company") (NYSE:SBL) during the period from October 20, 2000 through February 13, 2002, inclusive (the "Class Period"), has identified CVS Corp. and Federal Express as two companies from which, Symbol prematurely booked orders as revenue in order to artificially boost its fourth quarter 2000 sales. The case was filed in the United States District Court for the Eastern District of New York. Named as defendants are Symbol and three of the Company's senior officers.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934. As alleged in the Complaint, Symbol, a provider of wireless networking and information systems, engaged in various improper revenue recognition practices that had the effect of increasing the Company's reported revenue and profits. Along with its premature booking of revenue from CVS and Federal Express, Symbol booked an unusually large one-time royalty payment from a company in which Symbol had invested $50 million, thereby essentially paying itself to inflate third quarter 2000 results; used expenses associated with its December 2000 acquisition of troubled Telxon Corp. to mask declining sales; and booked more than $40 million in revenue in the first quarter of 2001 from orders, which included side provisions allowing customers to delay payments or return merchandise, and from orders that were never shipped.
In May 2001, around the time Symbol reported its inflated first quarter 2001 results, the Securities and Exchange Commission ("SEC") began an inquiry into the Company's financial reports. In response, Symbol commissioned an independent review of its sales practices by the accounting and consulting firm KPMG. The public became aware of Symbol's activities when on February 13, 2002, Newsday.com published an expose regarding many of the aforementioned financial machinations. The next day, Symbol Technologies announced it was lowering its sales and earnings projections for 2002 and that its Chief Executive Officer had unexpectedly resigned.
Following the report made in the Newsday article and the Company's announcements, the price of Symbol Technologies stock fell more than 77% from a Class Period high price of $37.29 to close at $8.40 on February 15, 2002.
If you purchased the common stock of Symbol Technologies during the Class Period, you have until May 6, 2002, to ask the Court to appoint you as one of the lead plaintiffs for the Class. To serve as lead plaintiff, you must meet certain legal requirements. If you wish to review a copy of the Complaint, to discuss this action or have any questions, please contact Andrew G. Tolan, Esq. of the Pomerantz firm at 888-476-6529 (or (888) 4-POMLAW), toll free, or at agtolan@pomlaw.com by e-mail. Those who inquire by e-mail are encouraged to include their mailing address and telephone number.
The Pomerantz firm, which has offices in New York and Chicago, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz firm pioneered the field of securities class actions. Today, more than 50 years later, the Pomerantz firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca o