MINNEAPOLIS, July 11, 2006 (PRIMEZONE) -- Charles H. Johnson & Associates announces that a class action suit in the United States District Court for the District of Massachusetts has been filed against Brooks Automation, Inc. ("Brooks" or the "Company") (Nasdaq:BRKS) and certain of its officers and directors, on behalf of all persons or entities who purchased or otherwise acquired the publicly traded securities of Brooks between July 25, 2001 and May 22, 2006, inclusive (the "Class Period").
The complaint alleges that during the Class Period, defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Sections 11, 12 and 15 of the Securities Act of 1933 by publicly issuing a series of false and misleading statements regarding the Company's business and financial results, thus causing Brooks' shares to trade at artificially inflated prices.
The Complaint alleges that on March 18, 2006, The Wall Street Journal published a story that identified Brooks as one of several companies "with wildly improbable option-grant patterns." On April 26, 2006, Brooks disclosed that its Board of Directors created a special committee to conduct an internal review of matters related to past stock option grants. On May 11, 2006, Brooks issued a press release which stated, "the Company will be required to correct certain SEC filings, including particularly its financial statements contained in filings for some or all of the periods commencing in fiscal 1999 and ending in fiscal 2005...(t)he Company believes that it accounted for certain matters concerning stock options incorrectly..." On May 18, 2006, Amin J. Khoury and Roger D. Emerick reportedly resigned from the Company's Board.
The Complaint also alleges that the Securities and Exchange Commission is conducting an informal inquiry concerning stock option grant practices to determine whether violations of the federal securities laws have occurred, and Brooks has allegedly received a grand jury document subpoena from the U.S. Attorney for the Eastern District of New York requesting records pertaining to the granting of stock options.
The Complaint further alleges that during the Class Period, certain Company insiders sold approximately 320,000 Brooks shares at artificially inflates prices for proceeds of approximately $6.4 million.
If you are a member of the proposed Class, you may move the court to serve as a lead plaintiff for the Class on or before August 19, 2006. You need not seek to become a lead plaintiff in order to share in any possible recovery.
If you purchased Brooks Automation securities during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Neil Eisenbraun, Esq. (cjohnsonlaw@gmail.com) Charles H. Johnson & Associates 2599 Mississippi Street New Brighton, MN 55112 (651) 633-5685
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca