SAN DIEGO, May 25, 2005 (PRIMEZONE) -- Scott + Scott, LLC (http://www.scott-scott.com) filed a class action in the United States District Court for the District of Washington on behalf of the purchasers of Cray Inc. (Nasdaq:CRAYE) ("Cray" or the "Company") securities between July 31, 2003 and May 12, 2005, inclusive (the "Class Period"). Cray is engaged in the design, development, marketing and support of high-performance computer systems, commonly known as supercomputers.
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from May 25, 2005. If you wish to discuss this action or have questions concerning this notice or your rights, contact Scott + Scott attorneys Neil Rothstein (nrothstein@scott-scott.com) or Amy Saba in the firm's San Diego office (asaba@scott-scott.com) or 800/332-2259. Mr. Rothstein can also be reached at 619/251-0887 (cell).
The complaint alleges that the Company's manufacturing processes, internal controls and testing were flawed and ineffective and that Cray's own auditors and Audit Committee knew of the flawed and ineffective internal controls. Further, the complaint alleges that delays in inventory recognition realization and revenue were a recurring and unpredictable feature of Cray's business model and that Cray was either losing money or just breaking even on certain customer orders. Despite these problems, Plaintiff alleges that during the Class Period, Cray failed to disclose, and in fact misrepresented, material adverse facts, about the Company's financial health. Notably, the complaint alleges that the Company failed to disclose that business metrics having a direct bearing on revenue recognition were becoming increasingly unfavorable, were unlikely to improve anytime soon and would ultimately impact the Company's financial operations.
On May 9, 2005, Cray revealed that it had failed to include an auditor's opinion on management's assessment of internal control over financial reporting. Moreover, it is alleged that Cray continued to report revenue results adversely impacted by faulty internal controls and past quarter practices. Cray's stock price, which was as high as $13.49 during the Class Period, closed on May 12, 2005 at $1.34
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact Plaintiff's counsel Scott + Scott. Signing with this law firm does not make you a lead plaintiff. It does, however, confer upon the client certain benefits such as updates on litigation and attorney contact. The firm is currently litigating major securities, antitrust and employee retirement plan cases throughout the United States and represents pension funds, charities, foundations, individuals and other entities worldwide -- in both class and non-class cases. Such cases the firm is working on include those securities cases against Friedman, Billings, Ramsay Group, MBNA, Rhodia, Corn Products, GlaxoSmithKline, Doral Financial, Able Pharmaceuticals and more.
Scott + Scott dedicates itself to client communication and satisfaction. Please visit our website (under reconstruction) at http://www.scott-scott.com to learn more about the firm, its practice and other cases. If you wish to discuss these actions with an attorney or have any questions concerning this notice, your rights or any matter within our expertise, please contact attorney Neil Rothstein or Amy K. Saba by calling 800-404-7770 (EST) or 800-332-2259 (PST). You can dial direct in California at 619-233-4565 or if needed, at Mr. Rothstein's cell at 619/251-0887.
Scott + Scott, LLC is a Connecticut based law firm with office in California and Ohio. This release is issued in accordance with the applicable U.S. federal law.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.