LOS ANGELES, June 17, 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 District of Minnesota on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of Pemstar, Inc. ("Pemstar" or the "Company") (Nasdaq:PMTR), between January 29, 2003 and January 24, 2005 (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 Pemstar and certain of the Company's executive officers with violations of federal securities laws. Pemstar Inc. provides a range of global engineering, product design, automation and test, manufacturing and fulfillment services and solutions to its customers in the communications, computing and data storage, industrial equipment and medical industries. The Complaint alleges that, In order to make the Company more competitive, defendants sought to and did manipulate Pemstar's financials to inflate the Company's shares and bolster the Company's opportunities to generate sales from clients who might otherwise lack confidence in the Company. To compete, Pemstar claimed it had superior engineering capabilities, product quality, and flexibility and timeliness in responding to design and schedule changes.
The Complaint alleges defendants knew but concealed from the public material adverse facts, including that: (a) the Company, internally, needed margins of at least 9% in order to achieve profitability but was years away -- if ever -- from achieving profitability or even breaking even; (b) the Company's financial results were false and misleading; (c) the Company had understated its liabilities associated with its Mexican facilities; (d) the Company's accounts receivables were overstated as this asset was materially impaired; and (e) as a result, certain of defendants' projections for the Company's financial results were materially false and misleading.
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 August 15, 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
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca