SAN FRANCISCO, Feb. 17, 2005 (PRIMEZONE) -- An investor has sued Sipex Corporation ("Sipex" or the "Company") (Nasdaq:SIPX) claiming that the technology firm misled investors about its finances.
Berman DeValerio Pease Tabacco Burt & Pucillo (www.bermanesq.com) filed the class action on February 15, 2005 in the U.S. District Court for the Northern District of California, San Francisco Division. The lawsuit seeks damages for violations of federal securities laws on behalf of all investors who bought Sipex common stock during the period of April 11, 2003 through and including January 20, 2005 (the "Class Period").
To receive a copy of the complaint, you may contact the court, call the firm at (800) 516-9926 or go to http://www.bermanesq.com/pdf/Sipex-Cplt.pdf.
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.
According to the complaint, Sipex used improper accounting to artificially inflate the Company's reported financial results and mislead investors.
Throughout the Class Period, the Company reported positive results in its SEC filings and public announcements, attributing the figures to increased sales and cost savings from the restructuring of its operations.
Then, on January 20, 2004, after the market closed, Sipex announced that it might need to restate its reported financial statements for fiscal 2003 and for the first three quarters of fiscal 2004. The Company stated that it had discovered "improper recognition of revenue during these periods on sales for which price protection, stock rotation and/or return rights may have been granted," and that the Company's audit committee and board of directors had commenced an internal investigation of the matter.
In reaction to this news, the price of Sipex stock dropped $0.90 per share on January 21, 2005 to close at $2.94, a decline of 23% from its previous trading day's closing price of $3.84.
If you purchased Sipex common stock from April 11, 2003 through and including January 20, 2005 you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
Christopher T. Heffelfinger, Esq.
425 California Street, 21st Floor
San Francisco, CA 94104
(415) 433-3200
law@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 March 25, 2005. 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=535. 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.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.