LOS ANGELES, March 9, 2006 (PRIMEZONE) -- Glancy Binkow & Goldberg LLP -- representing shareholders of Dot Hill Systems Corporation -- announces 25 days remaining to move to be a lead plaintiff in the shareholder lawsuit. All persons and institutions who purchased securities of Dot Hill Systems Corporation ("Dot Hill" or the "Company")(Nasdaq:HILL) between April 23, 2003 and February 3, 2005 (the "Class Period"), may move the Court not later than April 3, 2006, to serve as lead plaintiff, however, you must meet certain legal requirements.
If you wish to receive a copy of the Complaint, or have any questions concerning 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, Toll Free at (888) 773-9224, or e-mail to info@glancylaw.com, or visit our website at www.glancylaw.com.
The Complaint charges Dot Hill 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 Dot Hill's operations and financial performance caused the Company's stock price to become artificially inflated, inflicting damages on investors. Dot Hill provides storage network solutions and data storage products to channel and OEM partners worldwide. The Complaint alleges that during the Class Period defendants knew or recklessly disregarded but concealed from the investing public that: (i) the Company's accounting department suffered from material weaknesses and deficiencies and lacked the necessary staff and resources to perform its required functions; (ii) the Company's inadequate internal accounting process and controls enabled Dot Hill management to manipulate the Company's Costs of Goods Sold and to routinely and inappropriately misclassify "expenses," causing Dot Hill to issue false financial statements; (iii) the Company's internal controls suffered serious deficiencies in multiple areas, including data entry, expense classification, financial closing processing, fixed asset processing and inventory processing; (iv) the Company's financial reporting process lacked effective internal controls which were required to properly analyze and/or estimate Dot Hill's future financial and operational performance, and (v) the Company falsely reported its financial results for the first three quarters of 2004, by improperly recognizing revenue and improperly recording expenses.
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 controls over its financial closing process. As a result of this news, the price of Dot Hill stock plummeted to as low as $5.70 per share -- 67% below the Class Period high of $17.37 per share.
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 April 3, 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.