LOS ANGELES, June 10, 2005 (PRIMEZONE) -- Notice is hereby given by Glancy Binkow & Goldberg LLP that a Class Action lawsuit was filed in the United States District Court for the Western District of Washington on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of Cray, Inc. ("Cray" or the "Company") (Nasdaq:CRAY), between July 31, 2003 and May 12, 2005 , inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Cray and certain of the Company's executive officers with violations of federal securities laws. The Complaint alleges defendants' omissions and material misrepresentations during the Class Period artificially inflated the Company's stock price, inflicting damages on investors. Cray, Inc. designs, develops, markets and services computer systems commonly known as supercomputers -- designed to provide high actual sustained performance on difficult computational problems. Plaintiff claims that, unbeknownst to public investors, defendants knew or recklessly disregarded and failed to disclose to the investing public that: (i) the Company's internal controls were inadequate, resulting in, among other things, inadequate review of third-party contracts and lack of software application controls and documentation; (ii) as a consequence, the Company struggled to manage basic operational tasks, such as the development of software applications or customer requirements and specifications for systems per contract; and (iii) defendants' statements with respect to Cray's status and progress were lacking in any reasonable basis when made.
On March 16, 2005, Cray disclosed that it will delay filing its 2004 annual report with the SEC due to an ongoing review of the Company's internal controls, with a preliminary assessment that Cray, among other things, "expects that it will identify one or more material weaknesses, including inadequate review of third-party contracts and lack of software application controls and documentation." The news caused Cray shares to plummet more than 25%, to close on Mach 17, 2005, at $2.23 per share.
On May 9, 2005, Cray reported financial results for the first quarter ended March 31, 2005, including a $21.0 million loss, or $0.24 per share -- compared to a net loss of $3.8 million, or $0.05 per share in the first quarter last year. This news caused Cray's share price to plummet an additional 29%, to close on May 10, 2005 at $1.47 per share.
Plaintiff seeks to recover damages on behalf of Class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the Class described above, you may move the Court, not later than July 25, 2005, to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have any questions concerning this Notice or your rights or interests with respect to these matters, please contact Michael Goldberg, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.