BALA CYNWYD, Pa., Aug. 30, 2002 (PRIMEZONE) -- A pending class action charges HPL Technologies, Inc. ("HPL") (Nasdaq:HPLAE) 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 Northern District of California. Plaintiff seeks damages for violations of the federal securities laws on behalf of all investors who purchased HPL Technologies, Inc. securities between July 31, 2001 and July 18, 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 HPL Technologies, 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 on 7/31/01, the California-based HPL Technologies, Inc. completed its initial public offering ("IPO") of 6.9 million shares (including the over allotment) at $11.00 per share, raising net proceeds of $69.1 million. The IPO was accomplished pursuant to a Prospectus and Registration Statement filed with the SEC. These documents represented that the Company recognized revenue on sales to distributors only when the distributors sold the software license or services to their customers. Later, HPL reported favorable financial results for the 1stQ, 2ndQ, 3rdQ and 4thQ of F02.
The complaint further alleges that as a result of HPL's favorable but false financials and false and misleading statements, its stock traded as high as $17.85 per share. Defendants took advantage of this inflation, selling 85,500 shares of their individual holdings. Then, on 7/19/02, before the markets opened, HPL shocked the market with news that it was investigating accounting irregularities with respect to revenue recognition on shipments to distributors in prior quarters that its CEO had been fired and its CFO had been reassigned. On this news, HPL's stock collapsed 72% to as low as $4 per share, before trading was halted.
If you purchased HPL Technologies, Inc. securities between July 31, 2001 and July 18, 2002, you may be a member of the class and have until September 23, 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.