PHILADELPHIA, July 21, 2004 (PRIMEZONE) -- The law firm of Spector, Roseman & Kodroff, P.C. announces that a class action lawsuit was commenced in the United States District Court for the District of Oregon, on behalf of purchasers of the securities of Merix Corporation ("Merix" or the "Company") (Nasdaq:MERX) between July 1, 2003 through May 13, 2004, inclusive (the "Class Period").
The Complaint alleges that defendants violated the federal securities laws by misrepresenting during the Class Period that Merix was well-positioned for continued growth and profitability and that its business was growing at a faster pace than its competitors. However, the defendants knew, or recklessly disregarded, that actual demand for the Company's high-end services was declining and demand for its products was driven by inventory build-up by its customers, who would meet end-user demand by selling off the inventory, thereby cutting into new sales for Merix. As a result of Defendants' failure to disclose these highly material facts about Merix's business, the Company's stock was artificially inflated during which time Merix insiders, including defendants Hollinger and Brown, personally sold a total of 162,138 shares for total proceeds of $3,398,478.
On May 13, 2004, after the close of trading, Merix issued a press release announcing that instead of earning a profit of between $0.19 and $0.22 per share for its fourth quarter of 2004, as the Company had previously stated it expected to earn, it now expected to report a loss of $0.03 to $0.06 per share. In response to this announcement, the price of Merix common stock dropped from a closing price of $15.32 per share on May 13, 2004 to $10.68 per share on May 14, a one-day drop of over 30% on unusually heavy trading volume.
If you purchased Merix securities during the Class Period, you may, no later than August 16, 2004, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in Merix securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action, please visit http://www.srk-law.com/dbjoinaclassaction.asp. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via e-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.