BALA CYNWYD, Pa., April 8, 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 Colorado on behalf of all purchasers of the common stock of Ultimate Electronics, Inc. ("Ultimate" or the "Company") (Nasdaq:ULTE) from March 13, 2002 through August 8, 2002, 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 charges that during the Class Period, the defendants issued and/or failed to correct false and misleading financial statements and press releases concerning the Company's publicly reported revenues and earnings directed to the investing public.
Throughout the Class Period, the Company maintained that it could offset any reduction in margins incurred as a result of this transition through continued sales of high margin items, including direct broadcast satellite (DBS) service and systems and audio equipment.
Yet, in part to enjoy a large economic windfall as a result of its class period offering of Ultimate stock, the Company failed to disclose that high margin sales were decreasing rapidly and with it, a critical stabilizer to the Company's bottom line. On August 8, 2002 the Company finally disclosed that because of the reduction in high margin sales, the Company would miss its second quarter earnings EPS outlook by almost 50%.
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 June 9, 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