COLCHESTER, Conn., Jan. 30, 2006 (PRIMEZONE) -- Scott+Scott, LLC (http://www.scott-scott.com), who at the direction of clients filed the first of a number of similar securities fraud class actions against FARO Technologies, Inc. ("FARO" or the "Company")(Nasdaq:FARO) and certain officers on behalf of investors who purchased FARO securities between May 6, 2004, and November 3, 2005, inclusive (the "Class Period"), now notifies investors that if you purchased or otherwise acquired FARO securities on any stock exchange during the Class Period, you may, no later than February 6, 2006, move the Court to serve as lead plaintiff.
You can join this class action as lead plaintiff online at: www.scott-scott.com. To serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action or have questions concerning this notice or your rights, you may contact Scott+Scott partner David R. Scott (drscott@scott-scott.com, 800/404-7770) 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. 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.