NEW YORK, May 17, 2013 (GLOBE NEWSWIRE) -- Pomerantz Grossman Hufford Dahlstrom & Gross LLP has filed a class action lawsuit against Nam Tai Electronics, Inc. ("Nam Tai" or the "Company") (NYSE:NTE) and certain of its officers. The class action, filed in United States District Court, Southern District of New York, and docketed under 13 CV 3371, is on behalf of a class consisting of all persons or entities who purchased or otherwise acquired securities of Nam Tai between August 6, 2012 and April 26, 2013, both dates inclusive (the "Class Period"). This class action seeks to recover damages against the Company and certain of its officers and directors as a result of alleged violations of the federal securities laws pursuant to Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder.
If you are a shareholder who purchased Nam Tai securities during the Class Period, you have until July 16, 2013 to ask the Court to appoint you as Lead Plaintiff for the class. A copy of the Complaint can be obtained at www.pomerantzlaw.com. To discuss this action, contact Robert S. Willoughby at rswilloughby@pomlaw.com or 888.476.6529 (or 888.4-POMLAW), toll free, x237. Those who inquire by e-mail are encouraged to include their mailing address, telephone number, and number of shares purchased.
Nam Tai is an electronics design and manufacturing services provider to original equipment manufacturers ("OEMs"). The Company manufactures cell phones, palm-sized PCs, personal digital assistants, electronic dictionaries, calculators, digital camera accessories, components including liquid crystal display modules ("LCMs") and panels, radio frequency modules, and flexible printed circuit subassemblies.
The Complaint alleges that throughout the Class Period, Defendants made false and/or misleading statements, as well as failed to disclose material adverse facts about the Company's business, operations, and prospects. Specifically, Defendants made false and/or misleading statements and/or failed to disclose that: (1) intense competition had forced the Company to lower its unit sales prices, thereby threatening the Company's future profitability; (2) anticipated cancellation and fluctuation of orders by its key customers would cause it to halt capital investment into technology platforms; (3) Due to declining margins and volatility, the Company would have to halt its best quality LCM production operations services in both its Shenzhen and Wuxi manufacturing facilities in order to minimize further losses and preserve cash; and (4) as a result of the foregoing, the Company's statements were materially false and misleading at all relevant times.
On April 29, 2013, the Company disclosed that customer orders for its liquid crystal display modules were much lower than originally anticipated. The Company noted that it relies on a very small number of customers forcing it to lower its prices to meet customers' needs. Furthermore, the Company disclosed that it was considering halting its best quality LCM production operations service in both its Shenzhen and Wuxi manufacturing facilities by the end of June 2013 in order to minimize further losses and preserve cash. On this news, the Company's shares declined $3.58 per share, or over 31.6%, to close at $7.75 per share on April 29, 2013.
The Pomerantz Firm, with offices in New York, Chicago, Florida, and San Diego, is acknowledged as one of the premier firms in the areas of corporate, securities, and antitrust class litigation. Founded by the late Abraham L. Pomerantz, known as the dean of the class action bar, the Pomerantz Firm pioneered the field of securities class actions. Today, more than 70 years later, the Pomerantz Firm continues in the tradition he established, fighting for the rights of the victims of securities fraud, breaches of fiduciary duty, and corporate misconduct. The Firm has recovered numerous multimillion-dollar damages awards on behalf of class members. See www.pomerantzlaw.com.