WEST PALM BEACH, Fla., May 6, 2004 (PRIMEZONE) -- An investor has sued MasTec, Inc. ("MasTec" or the "Company") (NYSE:MTZ), claiming the company and two of its top officers issued misleading financial statements to the investing public.
Berman DeValerio Pease Tabacco Burt & Pucillo (www.bermanesq.com) filed the class action on May 5, 2004 in the U.S. District Court for the Southern District of Florida. The lawsuit seeks damages for violations of federal securities laws on behalf of all investors who bought MasTec common stock from May 13, 2003 through and including April 12, 2004 (the "Class Period").
Berman DeValerio has represented investors in class actions since 1982. To receive a copy of the complaint, you may contact the court, call the firm at (800) 349-4612 or go to http://www.bermanesq.com/pdf/Mastec-Cplt.pdf. The complaint, Keedi v. MasTec, Inc., et. al., is filed as Civil Action No. 04-21066-Civ-Gold.
The lawsuit claims that the defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and the rules and regulations promulgated thereunder, including U.S. Securities and Exchange Commission (SEC) Rule 10b-5.
The complaint names as defendants: MasTec, Inc.; Austin Shanfelter, who is MasTec's president and chief executive officer; and Donald P. Weinstein, who is MasTec's chief financial officer and executive vice president.
According to the complaint, MasTec issued materially false and misleading information to the investing public during the Class Period that artificially inflated the Company's stock price. Specifically, the lawsuit says that the defendants knew but concealed from the investing public that the Company:
1) materially inflated its financial results;
2) prematurely recognized revenue on various contracts;
3) improperly recognized revenue in violation of Generally Accepted Accounting Principles;
4) overstated its inventory; and
5) failed to maintain adequate reserves for bad debts, inventory, cost overruns, and projected losses on certain projects.
On April 13, 2004, MasTec announced its 2003 operating results and disclosed material problems that could result in a restatement of its previously announced financials. Additionally, MasTec disclosed that during the Company's review and analysis of its annual results, management identified a number of matters that affected current and prior-period operating results. The defendants concluded that these matters required a detailed analysis and evaluation to determine the appropriate accounting remedy, which could require restatements of previously reported financial statements.
On this news, MasTec's stock dropped $1.50 per share, or 15.5 percent, on April 13, 2004.
If you purchased MasTec, Inc. common stock from May 13, 2003, through and including April 12, 2004, you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
Michael J. Pucillo, Esq. Jay W. Eng, Esq. Northbridge Centre, Suite 1701 515 North Flagler Drive West Palm Beach, FL 33401 (800) 349-4612 lawfla@bermanesq.com
If you wish to apply to be lead plaintiff in this action, a motion on your behalf must be filed with the court no later than June 14, 2004. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action, or you may submit information online at http://www.bermanesq.com/Securities/Signup1.asp?caseid=509. Please note, you may also retain counsel of your choice and need not take any action at this time to be a class member.
Berman DeValerio Pease Tabacco Burt & Pucillo prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations, and consumer fraud. The firm consists of 33 attorneys in Boston, San Francisco and West Palm Beach, Florida.