NEW YORK, Feb. 15, 2006 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit in the United States District Court for the Southern District of California, on behalf of shareholders who purchased or otherwise acquired the securities of Dot Hill Systems Corporation ("Dot Hill" or the "Company") (Nasdaq:HILL) between April 23, 2003 and February 3, 2005, inclusive (the "Class Period"). Murray, Frank & Sailer LLP is seeking to pursue remedies under the Securities Exchange Act of 1934 against defendants Dot Hill, James L. Lambert, Dana W. Kammersgard, Preston S. Romm and William R. Sauey (the "defendants").
The complaint alleges that defendants filed with the SEC, and disseminated to the investing public, false and misleading statements concerning Dot Hill's business, which artificially inflated the price of Dot Hill stock. Specifically, the complaint asserts that during the Class Period, defendants knew or recklessly disregarded but concealed from the investing public that (a) the Company's accounting department suffered from material weaknesses and deficiencies and lacked the necessary staff and resources to perform its required functions; (b) the Company's inadequate internal accounting process and controls enabled Dot Hill management to manipulate the Company's Costs of Goods Sold ("COGS") and routinely and inappropriately misclassify "expenses" causing Dot Hill to issue false financial statements; (c) multiple areas of the Company's internal controls suffered serious deficiencies; (d) the Company lacked effective internal controls in its financial reporting process; and (e) the Company falsely reported its Q1-Q3 2004 financial results by improperly recognizing revenue and by improperly recording expenses.
As a result of defendants' allegedly false and misleading statements, Dot Hill's stock traded at inflated levels during the Class Period, rising to as high as $17.37 on December 1, 2003.
When defendants' prior misrepresentations and fraudulent conduct were disclosed, and became apparent to the market, Dot Hill Stock plummeted. On February 3, 2005, the Company announced its preliminary financial results for the fourth quarter 2004 and that it would be restating its 2004 unaudited financial results due to the material weaknesses in its internal control over its financial closing process. On this news, shares of Dot Hill fell $0.66 per share on increased trade volume, or 10.38 percent, to close, on February 4, 2005, at $5.70 per share. For the year following this disclosure, the stock reached a high of $8.25 and a low of $4.56.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than fifteen years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. If you purchased or otherwise acquired Dot Hill securities on any exchange between April 23, 2003 and February 3, 2005, and sustained damages, you may, no later than April 3, 2006, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Kimberly D. Reilly of Murray, Frank & Sailer LLP.