LOS ANGELES, July 18, 2003 (PRIMEZONE) -- Notice is hereby given that Glancy & Binkow LLP commenced a Class Action lawsuit in the United States District Court for the Middle District of North Carolina on behalf of a class (the "Class") consisting of all persons who purchased securities of Cree, Inc. ("Cree" or the "Company") (Nasdaq:CREE) between January 14, 2000 and June 13, 2003, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy & Binkow LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9161 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Cree and certain of the Company's executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' dissemination of materially false and misleading statements concerning Cree's business operations caused the Company's stock price to become artificially inflated, inflicting damages on investors. Cree is engaged in the development and manufacture of compound semiconductor materials and electronic devices made from silicon carbide, gallium nitride and related materials. The complaint alleges that the "Use Of Proceeds" section of a prospectus and registration statement Cree filed on January 14, 2000, in connection with the offering of 2,860,000 shares of common stock failed to disclose that Cree would invest $5 million of the offering proceeds in World Theatre, Inc., a speculative start-up company in which a brother of the Company's Chairman and Chief Executive Officer, was a substantial shareholder. Additionally, in December 2000, in connection with Cree's purchase of the UltraRF division from Spectrian Corporation, Cree misrepresented that UltraRF would be accretive to earnings and that Spectrian would enter into a 2-year supply agreement with Cree. However, defendants failed to disclose that Spectrian was required to purchase only if Cree sold product to it at the lowest available commercial price. On June 13, 2003, a lawsuit filed against Cree revealed that the Company had falsified its books to allow certain executives to receive higher compensation and had intentionally oversold product to C3 Corporation to artificially inflate Cree's income and stock price.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy & Binkow LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than August 18, 2003, to serve as lead plaintiff; however, you must meet certain legal requirements. 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 Lionel Z. Glancy, Esquire, of Glancy & Binkow LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9161 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca