PHILADELPHIA, Sept. 9, 2002 (PRIMEZONE) -- The law firm of Spector, Roseman & Kodroff, P.C. announces that a class action lawsuit has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of the stock HPL Technologies, Inc. ("HPL") (Nasdaq:HPLAE) securities during the period from July 31, 2001 through July 16, 2002 (the "Class Period").
The complaint charges HPL and certain of its officers and directors with violations of the Securities Exchange Act of 1934. HPL is a provider of yield optimization software solutions to enable semiconductor companies to enhance efficiency in the production process. On July 31, 2001, HPL 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 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 artificial inflation, selling 85,500 shares of their individual holdings. Then, on July 19, 2002, before the markets opened, HPL disclosed, unexpectedly, that it was investigating accounting irregularities with respect to revenue recognition on shipments to distributors in prior quarters and 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.
Plaintiff seeks to recover damages on behalf of all purchasers of HPL common stock during the Class Period (the "Class"). The plaintiff is represented by Spector, Roseman & Kodroff, who has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
If you purchased HPL securities during the Class Period, you may, no later than September 23, 2002, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. If you have sustained substantial losses in HPL securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action, please visit http://www.srk-law.com/dbjoinaclassaction.asp. If you would like to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via E-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com.
SPECTOR, ROSEMAN & KODROFF, P.C., located in Philadelphia, Pennsylvania and San Diego, California, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud . As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca