HARTFORD, Conn., Jan. 24, 2006 (PRIMEZONE) -- The law firm of Schatz & Nobel, P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Eastern District of Pennsylvania on behalf of all persons who purchased the common stock of Amkor Technology, Inc. ("Amkor" or the "Company") (Nasdaq:AMKR) between October 27, 2003 and July 1, 2004, inclusive, (the "Class Period"). Also included are those who purchased Amkor in a secondary offering on November 6, 2003.
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements regarding Amkor's financial condition. Specifically, defendants failed to disclose the following: (i) that Amkor was stuffing its customers with inventory far in excess of demand and, as a result, future sales would be impacted; (ii) that Amkor was experiencing rapidly rising material costs which were far in excess of budgeted material costs, thereby negatively impacting profit margins; and (iii) that Amkor had stuffed its distribution channels prior to its note offering in order to artificially inflate the Company's operating results so that the Company could raise $152 million.
On April 27, 2004, Amkor issued a press release announcing that the Company was experiencing weakness for its cell phone products. On this news, Amkor common stock fell from $13.42 to $9.16 per share. Then, on July 1, 2004, Amkor announced that it could not meet its expected guidance for net income in the second quarter of 2004. In response to this announcement, the price of Amkor common stock declined from $8.18 to $5.79 per share. The Securities and Exchange Commission ("SEC") has also issued a formal order of investigation concerning certain transactions in the Company's securities by insiders or former insiders and persons associated with them.
If you are a member of the class, you may, no later than March 24, 2006, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz & Nobel has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz & Nobel toll-free at (800) 797-5499, or by e-mail: sn06106@aol.com, or visit our website: www.snlaw.net.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.