BALA CYNWYD, Pa., March 31, 2003 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the District of Oregon on behalf of all purchasers of the common stock of Electro Scientific Industries, Inc. (Nasdaq:ESIO) ("Electro Scientific" or the "Company") from September 17, 2002 through March 20, 2003, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between September 17, 2002 and March 20, 2003, thereby artificially inflating the price of Electro Scientific securities. The Complaint alleges that these statements were materially false and misleading because they failed to disclose and misrepresented the following adverse facts, among others: (a) that the Company had reported artificially inflated financial results for the quarters ended August 31, 2002 and November 30, 2002; (b) that the Company was improperly accounting for sales, thereby overstating its sales figures and, in addition thereto, was understating the cost of sales, in violation of Generally Accepted Accounting Principles ("GAAP") and its own revenue recognition policies; (c) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (d) as a result of the foregoing, it was not true that the Company's financial statements published during the Class Period contained "all adjustments ... necessary for a fair presentation" of the Company's financial position.
On March 20, 2003, after the close of the market, Electro Scientific issued a press release announcing that it would be restating its financial statements for the first and second fiscal quarters. In response to this announcement, the price of Electro Scientific common stock dropped precipitously falling from $15.17 per share to $12.51 per share.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/cgi/signup.cgi.
If you are a member of the class described above, you may, not later than May 27, 2003, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca