BALA CYNWYD, Pa., June 3, 2002 (PRIMEZONE) -- A pending class action charges Gerber Scientific, Inc. (NYSE:GRB) with misleading investors about its business and financial condition according to the law firm of Schiffrin & Barroway, LLP.
The complaint was filed in the U.S. District Court for the District of Connecticut (302-CV-765). Plaintiff seeks damages for violations of the federal securities laws on behalf of all investors who purchased Gerber Scientific, Inc. securities between May 27, 1999 and April 12, 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 Gerber Scientific, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint alleges that the Connecticut-based Gerber Scientific, Inc. issued statements regarding Gerber Scientific's quarterly and annual financial performance and filed reports confirming such performance with the United States Securities and Exchange Commission ("SEC"). The complaint alleges that these statements were materially false and misleading because, among other things: (i) the Company was employing improper inventory and reserve accounting practices in violation of Generally Accepted Accounting Principles. As a result, the Company's operating results were materially misrepresented and overstated; (ii) the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (iii) based on the foregoing, defendants' statements concerning the prospects of Gerber Scientific were lacking in a reasonable basis at all times.
On April 15, 2002, before the market opened, Gerber Scientific announced that it expected to take a $12 million pre-tax charge in its fiscal fourth quarter, the period ending April 30, 2002. Additionally, Gerber Scientific announced that, in response to an investigation by the SEC into its inventory and reserve accounting practices, it was conducting an internal review of its financial reporting for the period January 1, 1998 through April 30, 2002. The Company further stated that its investigation is ongoing and once it has been completed, the Company will likely restate its financial results for the appropriate periods. In response to the Company's announcements, the price of Gerber Scientific common stock declined to $6.99 per share, a decline of more than 71% from a Class Period high of $24.50 per share, reached on July 6, 1999.
If you purchased Gerber Scientific, Inc. securities between May 27, 1999 and April 12, 2002 , you may be a member of the class and have until June 17, 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