NEW YORK, March 2, 2007 (PRIME NEWSWIRE) -- Labaton Sucharow & Rudoff LLP filed a class action lawsuit on March 2, 2007 in the United States District Court for the Southern District of New York, on behalf of persons who purchased or otherwise acquired publicly traded securities of Celestica, Inc. ("Celestica" or the "Company") (NYSE:CLS) between January 27, 2005 and January 30, 2007, inclusive, (the "Class Period"). The lawsuit was filed against Celestica, Stephen W. Delaney (former CEO) and Anthony P. Puppi (former CFO) (collectively,"Defendants").
If you are a member of this class you can retrieve the complaint from the Court or view a copy online at http://www.labaton.com/en/about/press/Celestica-Inc-release.cfm
The complaint alleges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that Defendants' Class Period earnings statements and SEC reports were materially false and misleading because they failed to disclose the truth regarding the problems experienced by the Company as a result of its restructuring. In particular, unknown to investors, the Company's Mexican operations, which under the restructuring plan was to receive 16 new customers that previously were provided for at more expensive locations, was simply not setup to handle the increase in volume, resulting in massive cost overruns, productivity delays, inventory management issues, and lost customer confidence that undermined the Company's credibility.
On December 12, 2006, Celestica issued a press release warning that it would be unable to meet its operational targets as stated in its October 26, 2006 press release. The Company stated that based upon its then current estimates, revenue would fall in a range of $2.2 billion to $2.5 billion, with adjusted net earnings falling in the range of $0.00 to $0.06 per share. The Company's prior guidance was for revenues of $2.25 billion to $2.45 billion in revenues and for $0.05 to $0.23 in net earnings per share. The reduction was attributed to demand reductions and inventory write-offs in its Monterrey, Mexico operations. Celestica shares reacted negatively to the news, falling from $9.37 per share to $8.23 per share on December 12, 2006, a one-day decline of 12.1%.
Then, on January 30, 2007, Celestica revealed that its net loss had more than tripled to $150.6 million, or ($0.66) per share. The Company attributed the increased loss to problems at its Mexican facilities and warned of additional charges. The Company also announced that Defendant Puppi would be stepping down from his role as Chief Financial Officer. In reaction to the news, Celestica shares fell from $7.73 per share to $5.96 per share, a one-day decline of 22.9%, on January 31, 2007.
Plaintiffs are represented by the law firm of Labaton Sucharow & Rudoff LLP. Labaton Sucharow is one of the country's premier national law firms that represent individual and institutional investors in class action, complex securities and corporate governance litigation. The firm has been a champion of investor rights for over 40 years and has been recognized for its reputation for excellence by the courts.
If you bought Celestica securities between January 27, 2005 and January 30, 2007, inclusive, you may qualify to serve as Lead Plaintiff. Lead Plaintiff papers must be filed with the court no later than March 13, 2007. If you would like to consider serving as lead plaintiff or have any questions about the lawsuit, please contact one of our representatives or Christopher Keller, Esq. at 800-321-0476.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca.