LOS ANGELES, August 1, 2003 (PRIMEZONE) -- Notice is hereby given that Glancy & Binkow LLP commenced a Class Action lawsuit in the United States District Court for the Northern District of California on behalf of a class (the "Class") consisting of all persons who purchased securities of Read-Rite Corporation ("Read-Rite" or the "Company")(Pink Sheets:RDRTQ) between October 30, 2001 and June 17, 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 Read-Rite and certain of the Company's executive officers with violations of federal securities laws. Plaintiff claims that defendants' dissemination of materially false and misleading statements concerning Read-Rite's financial condition caused the Company's stock price to become artificially inflated, inflicting damages on investors. Read-Rite designs, manufactures and markets magnetic reading devices such as hard disk drives. The complaint alleges that, during the Class Period, defendants failed to disclose or misrepresented that: (a) Read-Rite's 40 GB/platter inventory was overstated by $16.7 million; (b) the Company needed to restructure its operations, and the associated charges would cost the Company more than $20 million, causing earnings shortfalls in future quarters; (c) The Company's second quarter Fiscal Year 2003 loss was grossly understated; (d) Read-Rite was experiencing massive technical problems associated with the Company's 40GB/per platter programs, and was experiencing these problems well before January 2002 and beyond April 2002 when defendants claimed such problems were fixed; and (e) Read-Rite was underfunded, did not maintain sufficient staffing and could not complete the production of its 80-gigabyte product despite representations that it could. On June 17, 2003, Read-Rite formally announced that it had filed for bankruptcy protection seeking to liquidate its assets under Chapter 7. 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 September 5, 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 Michael Goldberg, 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