NEW YORK, July 21, 2003 (PRIMEZONE) -- The law firm of Kirby McInerney & Squire, LLP announces that a class action lawsuit has been commenced in the United States District Court for the Northern District of California on behalf of all purchasers of Read-Rite Pharmaceuticals, Inc. (``Read-Rite'' or the ``Company'') (Other OTC:RDRTQ) common stock during the period from October 30, 2001 to June 6, 2003, inclusive (the ``Class Period'').
Please visit our website, which offers summary and detailed information concerning the suit at http://www.kmslaw.com/new_cases/Read-Rite/Read-Rite.htm or contact us by phone at (888) 529-4787 or by email at emui@kmslaw.com for more information.
The action charges certain of Read-Rite's senior officers with violations of Sections 10(b) and Rule 10b-5 of the Securities Exchange Act of 1934. The alleged violations stem from the dissemination of false and misleading statements, which had the effect -- during the Class Period -- of artificially inflating the price of Read-Rite's shares.
The complaint alleges that during the Class Period defendants issued a series of false and misleading statements about the Company, and as a result Read-Rite's stock traded at inflated prices during the Class Period, increasing to as high as $39 on January 9, 2002, before the Company announced it would file for bankruptcy. The true facts which were known to each of the defendants, but concealed from the investing public during the Class Period, were as follows: (i) The Company's 40 GB/platter inventory was overstated by $16.7 million; (ii) The Company's Philippine real estate holdings were overstated by approximately $6.8 million; (iii) The Company needed to restructure its operations and the associated charges would cost the Company in excess of $20 million and would cause an earnings shortfall in coming quarters; (iv) The Company's Q2 FY03 loss was grossly understated; (v) The Company was experiencing massive technical problems associated with its 40GB/per platter programs. Moreover, the Company was experiencing these problems well before January 2002 and beyond April 2002 when defendants claimed such problems were fixed; and (vi) The Company was underfunded and could not complete the production of its 80GB programs.
Kirby McInerney & Squire, LLP has specialized in complex litigation, including securities class actions, for several decades. The firm has repeatedly demonstrated its expertise in this field, and has been recognized by various courts which have appointed the firm to major positions in consolidated and multi-district litigation. The firm's efforts on behalf of shareholders in securities litigation have resulted in recoveries totaling hundreds of millions of dollars, and its achievements and quality of service have been chronicled in numerous published decisions. More information about the firm, class actions in general, or about the role of the lead plaintiff in a securities class action can be obtained through Kirby McInerney & Squire's website at http://www.kmslaw.com.
If you are a member of the class described above, you may, no later than September 5, 2003, move the Court to serve as lead plaintiff of the class, if you so choose, pursuant to the Private Securities Litigation Reform Act of 1995 (the ``PSLRA''), 15 U.S.C. section 78u-4(a). A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. Under certain circumstances, one or more class members may together serve as lead plaintiff. Your ability to share in any recovery is not, however, affected by the decision whether or not to seek appointment as a lead plaintiff. For more information about the case, its claims, and your rights, you can contact:
Ira M. Press, Esq. Elaine Mui KIRBY McINERNEY & SQUIRE, LLP 830 Third Avenue, 10th Floor New York, New York 10022 Telephone: (212) 317-2300 or Toll Free (888) 529-4787 E-Mail: emui@kmslaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca