HARTFORD, Conn., June 16, 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 or otherwise acquired the publicly traded securities of Herley Industries, Inc ("Herley" or the "Company") (Nasdaq:HRLY) between October 1, 2001 and June 14, 2006, inclusive (the "Class Period"). Also included are all those who purchased in a Secondary Offering around April 24, 2002.
The Complaint alleges that defendants violated federal securities laws by issuing a series of materially false statements concerning Herley's financial performance. Specifically, defendants failed to disclose the following: (i) that Herley's financial results were achieved through illegal conduct, including the misrepresentation of manufacturing costs on contracts with the U.S. Government and the falsification of a bid in order to win the award of a contract; (ii) that the Company lacked adequate internal controls; and (iii) that, as a result, Herley would likely be subject to enhanced governmental scrutiny, governmental fines, and the Company's ability to receive new contract awards from the U.S. Government would be in serious doubt.
On June 6, 2006, Herley announced that the U.S. Attorney's office for the Eastern District in Pennsylvania had indicted the Company and defendant Blatt on multiple charges in connection with activities resulting in alleged excessive profits by the Company on three contracts with the U.S. Department of Defense. Then, on June 13, 2006, the Company announced that its operations in Lancaster, Pennsylvania; Woburn, Massachusetts; Chicago, Illinoi; and Herley's subsidiary in Farmingdale, New York were suspended from receiving new contract awards from the U.S. Government. On this news, Herley's stock fell from $19.38 per share to a 52-week low of $9.21 per share.
If you are a member of the class, you may, no later than August 14, 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 at sn06106@aol.com, or visit our website: www.snlaw.net.