HARTFORD, Conn., April 30, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard, 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 Central District of California on behalf of all persons who purchased or otherwise acquired the common stock of International Rectifier Corporation ("IRF" or the "Company") (NYSE:IRF) between October 27, 2005 and April 9, 2007, inclusive, (the "Class Period").
The Complaint alleges that IRF and certain of its officers and directors violated Federal Securities laws. Specifically, defendants failed to disclose that IRF's: (i) revenues, (ii) gross profits (iii) earnings, and (iv) accounts receivable were false and misleading, in violation of generally accepted accounting principles. The Complaint further alleges that on April 9, 2007, before the markets opened, IRF disclosed that an internal investigation revealed "accounting irregularities" at one of IRF's foreign subsidiaries which included premature revenue recognition of product sales. In addition, based on an interim report of the investigation, the Audit Committee of the Board of Directors concluded that the Company's financial statements for the quarters ended December 31, 2006, September 30, 2006, March 31, 2006, December 31, 2005 and September 30, 2005, and for the year ended June 30, 2006, should no longer be relied upon. On this news, shares declined from a close of $38.80 per share on April 5, 2007, to a close of $35.97 per share on April 9, 2007. While IRF shares were trading at artificially inflated prices, Company insiders sold approximately 364,000 IRF shares for proceeds of approximately $13 million.
If you are a member of the class, you may, no later than June 18, 2007, 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 Izard, P.C. 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 Izard, P.C. toll-free at (800) 797-5499, or by e-mail at firm@snlaw.net, or visit our website: www.snilaw.com.