COLCHESTER, Conn., Nov. 21, 2007 (PRIME NEWSWIRE) -- On November 20, 2007, Scott+Scott, LLP, filed a class action against FormFactor, Inc. ("FormFactor" or the "Company") (Nasdaq:FORM) and certain officers and directors in the U.S. District Court for the Northern District of California. The action is on behalf of FormFactor common stock purchasers during the period April 26, 2006, through October 24, 2007, inclusive (the "Class Period"), for violations of the Securities Exchange Act of 1934. The complaint alleges that defendants made false and misleading statements and material omissions regarding the Company's business and operations and that, as a result, the price of the Company's securities was inflated during the Class Period, thereby harming investors.
If you purchased FormFactor stock during the Class Period and wish to serve as a lead plaintiff in the action, you must move the Court no later than December 31, 2007. Any member of the investor 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. If you wish to discuss this action or have questions concerning this notice or your rights, please contact Scott+Scott (scottlaw@scott-scott.com, 800/404-7770, 860/537-5537) or visit the Scott+Scott website, http://www.scott-scott.com, for more information. There is no cost or fee to you.
FormFactor, Inc. develops and markets advanced wafer probe cards used by semiconductor manufacturers to electrically test integrated circuits ("ICs"). The Company claims that its wafer sort, burn-in and device performance testing products are used by semiconductor manufacturers to cost-effectively perform IC testing upstream at the wafer level. The complaint alleges that, during the Class Period, defendants issued false and misleading statements and financial reports that violated generally accepted accounting principles ("GAAP"). As a result, vital accounting and other information was concealed, including a true accounting for the Company's obsolete inventory and serious production constraints. It is also alleged that the production constraints would likely place a ceiling on the Company's future revenue opportunity, as a result of any inability to recoup costs and expenses or loss of customers.
On October 24, 2007, after the close of the markets, the Company issued a shocking press release regarding its sudden plans to undertake an "internal review of its inventory valuation practices." As a result of the shocking news, on October 25, 2007, the price of FormFactor stock plunged more than 17.8% or $7.70 per share to close at $35.54 per share on heavy volume of 8.3 million shares.
The plaintiff is represented by Scott+Scott, LLP, a lawfirm with significant experience in prosecuting investor class actions. Please visit our website at www.scott-scott.com for current information on the litigation of major securities, antitrust, employment and employee retirement plan actions throughout the United States. The firm represents pension funds, charities, foundations, individuals and other entities worldwide.
More information on this and other class actions can be found on the Class Action Newsline at www.primenewswire.com/ca