LOS ANGELES, Feb. 11, 2009 (GLOBE NEWSWIRE) -- Notice is hereby given that Glancy Binkow & Goldberg LLP has filed a class action lawsuit in the United States District Court for the District of New Mexico on behalf of a class consisting of all persons or entities who purchased or otherwise acquired the securities of Emcore Corporation ("Emcore" or the "Company") (Nasdaq:EMKR), between June 12, 2007 and June 30, 2008, inclusive (the "Class Period").
A copy of the Complaint is available from the court or from Glancy Binkow & Goldberg LLP. Please contact us by phone to discuss this action or to obtain a copy of the Complaint at (310) 201-9150 or Toll Free at (888) 773-9224, by email at info@glancylaw.com, or visit our website at http://www.glancylaw.com.
The Complaint charges Emcore and certain of the Company's current and former executive officers with violations of federal securities laws. Emcore provides compound semiconductor-based components and subsystems for the broadband, fiber optic, satellite and terrestrial solar power markets, including concentrating photovoltaic ("CPV") systems.
Throughout the Class Period, Emcore touted its order backlog, which analysts, investors and other market participants considered an indication of future profitability. The Complaint alleges that defendants' Class Period statements were false and misleading or failed to disclose that, among other things: (1) the Company's reported backlog was overstated; (2) the Company overstated the demand for its products; (3) the Company had improperly recognized revenue from transactions with customers that did not have the ability to pay the Company; (4) the Company's financial results were overstated; (5) the Company's financial results were not prepared in accordance with Generally Accepted Accounting Principles; and (6), the Company lacked adequate internal and financial controls.
On March 18, 2008, a report on the market by Citron Research (the "Citron Report") shocked investors by challenging the quality of Emcore's customers, their ability to pay for orders placed with Emcore, and the quality of Emcore's reported backlog. The Citron Report asserted that Emcore's largest customer, Green and Gold Energy ("GGE"), which accounted for $78 million of Emcore's $86 million order backlog in terrestrial solar technology, did not have the ability to pay for the orders that GGE had placed with Emcore. Moreover, the report questioned Emcore's claim that GGE was a "world-leading CPV system provider" and GGE's ability to complete its transactions or meet its agreements with Emcore. On this news, shares of Emcore declined $2.05 per share, more than 23%, to close on March 18, 2008 at $6.78 per share, on unusually heavy volume.
On June 30, 2008, a report on the market issued by research analysts from Canaccord Adams revealed, among other things, that upon meeting with ES Systems, one of Emcore's customers in South Korea, the analysts believed that market expectations for Emcore's business with ES Systems (based on Emcore's announcements) were overstated. On this news, shares of Emcore declined $0.97 per share, or 13.42%, on Monday June 30, 2008, and further declined an additional $0.68, or 10.86%, on July 1, 2008 to close on July 1, 2008 at $5.58 per share, on unusually heavy volume. Over this two-day period, Emcore's shares declined by $1.65 per share, or approximately 22%.
Plaintiff seeks to recover damages on behalf of class members and is represented by Glancy Binkow & Goldberg LLP, a law firm with significant experience in prosecuting class actions, and substantial expertise in actions involving corporate fraud.
If you are a member of the class described above, you may move the Court, no later than February 23, 2009, to serve as lead plaintiff, however, you must meet certain legal requirements. 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 Michael Goldberg, Esquire, or Richard A. Maniskas, Esquire, of Glancy Binkow & Goldberg LLP, 1801 Avenue of the Stars, Suite 311, Los Angeles, California 90067, by telephone at (310) 201-9150 or Toll Free at (888) 773-9224 or by e-mail to info@glancylaw.com.