BALA CYNWYD, Pa., Aug. 28, 2002 (PRIMEZONE) -- Shareholders of Uniroyal Technology Corp. (Nasdaq:UTCI) ("Uniroyal" or the "Company") who desire to serve as a lead plaintiff in a shareholder class action lawsuit now pending in federal court in Florida (02-CV-1276) must submit an application with the Court by September 3, 2002 according to the law firm of Schiffrin & Barroway, LLP.
The lawsuit seeks damages for violations of the federal securities laws on behalf of all investors who purchased Uniroyal Technology Corp. securities between February 8, 2000 and May 13, 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 Uniroyal Technology Corp. 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 Florida-based Uniroyal Technology Corp. issued a series of press releases touting its financial stability and its acquisition of Sterling Semiconductor, while strategically positioning Uniroyal to increase its participation in the explosive compound semiconductor industry via internal growth. However, unbeknownst to the investing public that purchased Uniroyal stock during the Class Period: (i) Uniroyal was not a financially stable company; (ii) its acquisition of Sterling was not lucrative at all; and (iii) it was not strategically positioning Uniroyal to increase its participation in the explosive compound semiconductor industry via acquisition and internal growth. But for Uniroyal's financial support, Sterling would probably have been forced to seek protection under the bankruptcy laws. Sterling was a development stage company and not, as defendants touted, "a leading developer of silicon carbide technology and materials." Moreover, in order to materially inflate Uniroyal's net worth and further foster the illusion of growth, defendants agreed to pay an inflated price for Sterling with materially overvalued stock serving as currency.
On December 31, 2001, eighteen months after having acquired Sterling in exchange for stock, with a purported value of more than $40 million, the Company shocked the market by announcing that it recorded a write-down of Sterling goodwill of approximately $9,816,000. On January 2, 2002, Uniroyal stock closed at $1.69 down from $3.20 the previous day and substantially down from its class period high of $71.125 reached on February 23, 2000.
If you purchased Uniroyal Technology, Corp. securities between February 8, 2000 and May 13, 2002, you may be a member of the class and have until September 3, 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