NEW YORK, April 17, 2006 (PRIMEZONE) -- The Rosen Law Firm (http://www.rosenlegal.com) has filed a class action lawsuit on behalf of all purchasers of Pixelplus Co., Ltd. ("Pixelplus" or the "Company") (Nasdaq:PXPL) American Depositary Shares during the period from December 21, 2005 through April 11, 2006, including purchasers in the Company's Initial Public Offering. The Rosen Law Firm has been retained to recover investors' losses from Pixelplus and certain of its officers and directors for alleged violations of the federal securities laws.
If you purchased Pixelplus shares and would like further information concerning your legal rights, please call Laurence Rosen, Esq. or Phillip Kim, Esq. toll-free at 866-767-3653 or email lrosen@rosenlegal.com or pkim@rosenlegal.com or visit the website at www.rosenlegal.com
You may join the class action online at http://www.rosenlegal.com
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights please contact plaintiff's counsel, Phillip Kim, Esq. or Laurence Rosen, Esq. via email at pkim@rosenlegal.com or lrosen@rosenlegal.com or call toll-free at 1-866-767-3653. You are not represented by an attorney, unless your retain one.
This case is pending in the United District Court for the Southern District of New York and has been assigned to the Honorable Thomas P. Griesa, under case no. 06-CV-2951. If you are a member of the class, you can view a copy of the complaint or join the class action online at http://www.rosenlegal.com. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
The Complaint charges that defendants violated the Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Sections 11 and 15 of the Securities Act of 1933 by issuing materially false and misleading financial information. The Complaint alleges that the during the Class Period, the Company reported materially false and misleading revenues for each reporting period in 2005. In particular, the Complaint alleges that the Company violated Generally Accepted Accounting Principles and the Federal Securities Laws, by failing to recognize sales to one of its affiliates, PTI, on a consolidated basis and recognizing sales that were uncollectible, which resulted in the Company overstating its revenues for 2005.
On April 11, 2006, the Company shocked the market when it announced, among other things, that its financial statements for 2005 should no longer be relied upon because the Company improperly recognized sales to PTI because the Company failed to consolidate PTI's results and accounted for sales that had uncertain collectibility. The Company admitted that it controls PTI as it has the ability to elect two-thirds of PTI's Board. As a result, the Company announced that revenues would be reduced by approximately $3.6 million and $2.5 million, for the fourth quarter of 2005 and fiscal year 2005, respectively. Following these adverse disclosures, the Company's stock price dropped nearly 37.2%.
The Rosen Law Firm http://www.rosenlegal.com has expertise in prosecuting investor securities litigation and extensive experience in actions involving financial fraud. The Rosen Law Firm represents investors throughout the nation, concentrating its practice in securities class actions.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca