NEW YORK, Feb. 8, 2007 (PRIME NEWSWIRE) -- The Brualdi Law Firm announces that a securities class action lawsuit has been commenced in the United States District Court for the Southern District of New York on behalf of purchasers of LG.Philips LCD Co., Ltd. ("LG.Philips") (NYSE:LPL) publicly traded securities during the period between July 16, 2004 and December 11, 2006 (the "Class Period").
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased LG.Philips common stock during the period described above, you have certain rights, and have until no later than 60 days from February 7, 2007, in which to move for Lead Plaintiff status. 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. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice. 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 Tali Leger, Director of Shareholder Relations at The Brualdi Law Firm, 29 Broadway, Suite 2400, New York, New York 10006, by telephone toll free at (877) 495-1877 or (212) 952-0602, by email to tleger@brualdilawfirm.com or visit our website at http://www.brualdilawfirm.com/
The complaint charges LG.Philips and certain of its officers and directors with violations of the Securities Exchange Act of 1934. LG.Philips engages in the manufacture and supply of thin film transistor liquid crystal displays ("LCD") to original equipment manufacturers and multinational corporations. It sells its products primarily in the United States, Korea, Asia, and Europe.
The complaint alleges that during the Class Period, defendants made positive statements concerning the Company's LCD business while, unbeknownst to investors, defendants were using artificial antitrust mechanisms, including price fixing, to support the Company's already inflated margins. However, by late spring 2006, as the Company's executives became aware of fines and jail sentences imposed for price fixing in the industry, they began ceasing their price-fixing behavior and rumors about the reasons for the sudden "weak pricing" in the LCD marketplace circulated throughout the markets. Without artificial anticompetitive mechanisms in place, the Company's profits began to fall and its share price declined from $22 to $15.
On December 8, 2006, officials from South Korea's Fair Trade Commission appeared at the Company's Seoul headquarters to proceed with a formal investigation of the Company and its top executives. Then on December 11, 2006, the Company announced it was being investigated for possible anticompetitive conduct in the LCD industry. The announcement spurred a two-day stock slide that erased about $1.6 billion in market value from the top five producers, including LG.Philips.
According to the complaint, during the Class Period, defendants concealed the following material adverse facts from the investing public: (a) from on or about June 2004 until on or about June 2006, LG.Philips and its co-conspirators entered into and engaged in a combination and conspiracy in the United States and elsewhere to suppress and eliminate competition by fixing the prices of LCD panel products to be sold to resellers and consumers; and (b) as a result, the Company's shares traded at inflated prices, enabling the Company to consummate its initial public offering raising $1 billion, its secondary offering raising $1.4 billion, and obtain an additional $500 million in other securities offerings on terms otherwise unobtainable but for defendants' conduct, including the use of defective prospectuses for each such offering.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca