LOS ANGELES, Jan. 13, 2006 (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 Middle District of Florida on behalf of a class (the "Class") consisting of all persons or entities who purchased or otherwise acquired securities of FARO Technologies, Inc. ("FARO" or the "Company") (Nasdaq:FARO) between May 6, 2004 and November 3, 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 to 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 FARO and certain of the Company's executive officers with violations of federal securities laws. Among other things, plaintiff claims that defendants' material omissions and dissemination of materially false and misleading statements concerning FARO's financial performance caused the Company's stock price to become artificially inflated, inflicting damages on investors. FARO and its subsidiaries develop, manufacture, market and support software-based three-dimensional measurement devices for manufacturing, industrial, building construction and forensic applications. The Complaint alleges that at or about the beginning of the Class Period, the Company represented that it had implemented principles that purportedly increased the Company's production capacity, among other improvements, by eliminating overproduction, wait time, inefficient processes, and product defects, among others. During the Class Period, defendants issued strong results and positive guidance which they attributed to, in material part, the Company's purported implementation of adequate controls and efficient practices. However, the complaint alleges that defendants' Class Period representations regarding its financial performance and prospects were materially false and misleading when made because the Company's internal inventory and accounting controls and procedures were wholly defective and inadequate during the Class Period.
On November 3, 2005, after the market closed, the Company announced that it had incurred $1.6 million in "inventory costing and consumption variances" related to the implementation of a new accounting and inventory management system. Defendant Simon Raab later admitted that the Company had not been able to keep up with customer orders which resulted in "substantially more complex inventory management situations, and ... substantial inventory increases." In reaction to this news, the price of FARO stock plummeted $4.39, or 19.6%, from its closing price of $22.38 on November 3, 2005, to finally close on November 4, 2005, at $17.99, on unusually heavy volume.
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 February 6, 2006, 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.