COLCHESTER, Conn., Dec. 27, 2005 (PRIMEZONE) -- Scott+Scott, LLC (http://www.scott-scott.com), at the direction of clients, filed the first of a number of similar securities fraud class actions in the United States District Court for the Middle District of Florida (Orlando Division -- No. 05-cv-1810) against FARO Technologies Inc. ("FARO" or the "Company") (Nasdaq:FARO) and individual defendants. Presently, the class is defined in the complaint drafted by Scott+Scott as those who purchased FARO securities between May 6, 2004, and November 3, 2005, inclusive (the "Class Period"). However, any purchaser of FARO securities can contact the firm as the class period may change as information is revealed. FARO engages in the design, development, marketing, and support of portable, software-driven, 3D measurement systems for a range of manufacturing and industrial applications (FAROTechnologiesSecuritiesLitigation@scott-scott.com).
If you purchased FARO securities during the Class Period and wish to serve as a lead plaintiff in the action, you must move the court no later than February 6, 2006. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott for more information. Scott+Scott will provide class members with case materials, answer all questions regarding participation and rights and assist with other services the firm provides. There is no cost or fee to you. Contact Scott+Scott partner Neil Rothstein (nrothstein@scott-scott.com, 800/332-2259, ext. 22 or cell 619/251-0887) or partner David R. Scott (drscott@scott-scott.com, 800/404-7770). Institutional Investors may also contact the firm at InstitutionalInvestors@scott-scott.com.
The complaint alleges that defendants violated provisions of the United States securities laws causing artificial inflation of the Company's stock price. According to the complaint, the Company repeatedly issued false and misleading quarterly and annualized financial guidance throughout the Class Period, in knowing or reckless disregard of the deficient and defective state of one or more of its controls and systems, with an adverse impact on its inventory accounting, order fulfillment and financial statements. It is further alleged that even though defendants quietly placed a resource management system into operation, defendants continued to conceal their deficient and defective controls and practices, causing the newly implemented system to supply false and erroneous information to the Company's departments and functions, with a continued direct, adverse impact on order fulfillment and corporate earnings.
Finally, investors learned the truth about the adverse impact of the Company's alleged defective and deficient inventory-related controls and systems on FARO's financial performance. As a result of defendants' shocking news and disclosures following the close of the markets on November 3, 2005, the price of FARO stock plummeted $5.88, from its closing price of $22.38 on November 3, 2005, to finally close on November 7, 2005, at $16.50, for a two-day loss of 26.38%, on combined volume of over 5.9 million shares.
The plaintiff is represented by Scott+Scott, LLC, which has significant experience in prosecuting investor class actions. The firm dedicates itself to client communication and satisfaction and currently is litigating major securities, antitrust and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities worldwide. Cases currently being litigated and/or investigated by Scott+Scott, LLC include: Refco, Inc.; Guidant Corp.; Abbott Laboratories; Halliburton; TRM Corp.; and Tempur-Pedic Int'l, among others. Its success has brought shareholders hundreds of millions of dollars in cases against Mattel, Royal Dutch/Shell, Sprint, ImClone and others.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca