NEW YORK, April 1, 2004 (PRIMEZONE) -- Wechsler Harwood LLP today announced that it has filed a Federal Securities fraud class action on behalf of persons or entities who purchased or otherwise acquired the securities of SPX Corporation (NYSE:SPW) ("SPX" or the "Company") between July 28, 2003 and February 26, 2004, both dates inclusive (the "Class Period").
The action, entitled Breithaupt v. SPX Corp., et al., Case No. not yet assigned, is pending in the United States District Court for the Western District of North Carolina and names as defendants, the Company, its Chairman of Board, President, and Chief Executive Officer, John B. Blystone, its Chief Financial Officer, Senior Vice President, and Treasurer, Patrick J. O'Leary, its Corporate Controller and Chief Accounting Officer, Ronald L. Winowieck, its Vice President, Secretary, and General Counsel, Christopher J. Kearney, and its President of Communication and Technology Systems, Lewis M. Kling. A copy of the complaint can be obtained from the Court or can be viewed on Wechsler Harwood web site at: www.whesq.com.
The complaint charges defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b- 5 promulgated thereunder. More specifically, the Complaint alleges that defendants failed to disclose and indicate: (1) that the $60 million gain from a legal settlement with Microsoft made it possible for the Company to achieve analysts' numbers for fiscal year 2003; (2) that the Company's "core" business was deteriorating; (3) that the Company was suffering from operating weaknesses; (4) that defendants lacked a reasonable basis for their positive statements about the Company and its earnings projections; and (5) that, as a result of the foregoing, defendants were able to artificially inflate the value of its stock.
On February 26, 2004, after the market closed, SPX announced that fourth quarter 2003 financial results were less than its previously issued guidance. More specifically, SPX reported fourth quarter 2003 results of $1.45 billion in revenues, diluted earnings per share from continuing operations of $1.30, and free cash flow from continuing operations of $303.8 million. On February 27, 2004, the market reacted negatively to this news with shares of SPX falling 21.20%, or $11.30 per share, to close at $42.00 per share on heavy volume.
If you purchased or otherwise acquired SPX securities during the Class Period, you may request that the Court appoint you as lead plaintiff by May 4, 2004. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. 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 serve as a lead plaintiff. You may retain Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm and detailed information regarding this matter. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 David Leifer, Wechsler Harwood Shareholder Relations Department: dleifer@whesq.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca