NEW YORK, April 11, 2007 (PRIME NEWSWIRE) -- Harwood Feffer LLP today announced that a class action suit has been commenced on behalf of all persons who purchased the common stock of U.S. Auto Parts Network, Inc. ("U.S. Auto Parts" or the "Company") (Nasdaq:PRTS) pursuant to the Company's Registration Statement and Prospectus (collectively, the "Registration Statement") issued in connection with the Company's February 8, 2007 Initial Public Offering ("IPO") or who purchased shares thereafter in the open market (the "Class Period").
The action is pending in the United States District Court for the Central District of California, and names as defendants, the Company as well as certain senior officers and directors. A copy of the complaint can be obtained from the Court or can be viewed on Harwood Feffer web site at www.hfesq.com.
The Complaint charges defendants with violations of Sections 11 and 15 of the Securities Act of 1933. More specifically, the Complaint alleges that on February 8, 2007, U.S. Auto Parts conducted an IPO of 10 million shares at $10.00 per share (including 8 million shares sold by U.S. Auto Parts and 2 million shares sold by stockholders, including certain of the defendants) for net proceeds of $100 million pursuant to the false and misleading Registration Statement, which failed to properly disclose that at the time of the IPO, the integration of PartsBin, acquired by the Company in May 2006, was not proceeding as planned (due primarily to the different distribution methods utilized by U.S. Auto Parts and PartsBin to fill customer orders and deficient internal controls of PartsBin), which would negatively impact the Company's fourth quarter 2006 and first quarter 2007 financial results.
On March 20, 2007, U.S. Auto Parts stunned investors with its announcement of disappointing fourth quarter 2006 and year end results. Upon this news, the price of U.S. Auto Parts plummeted in one day from $11.07 per share on March 20, 2007 to close at $6.49 per share on March 21, 2007.
If you are a member of the class described above, you may, not later than May 28, 2007, move the Court to serve as lead plaintiff of the class, if you so choose. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Harwood Feffer, or other counsel of your choice, to serve as your counsel in this action.
Harwood Feffer has taken a leading role in many important actions on behalf of defrauded shareholders, employee investors and consumers and is responsible for hundreds of millions of dollars in recoveries. The Harwood Feffer website (www.hfesq.com) contains detailed information regarding this matter and additional information about the firm.
NOTICE: Although Harwood Feffer has not filed an action against the defendants, you may view a copy of the initial complaint, find more information about this and other matters, and obtain information about your rights by visiting the firm website (www.hfesq.com) or by contacting Jeffrey M. Norton at 877-935-7400 (ext. 286), Tanya Korkhov (ext. 207) or another firm representative.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca