NEW YORK, Oct. 3, 2002 (PRIMEZONE) -- A class action Complaint has been filed in the United States District Court for the Northern District of California, civil action number 02-CV-4749, on behalf of all persons or entities who purchased or otherwise acquired securities of ESS Technology, Inc. ("ESS" or the "Company") (Nasdaq:ESST) between January 23, 2002 to September 12, 2002, both dates inclusive (the "Class Period"). ESS, Robert L. Blair, Patrick Ang and James B. Boyd are named as defendants in the complaint.
To discuss this action, this announcement, or your rights or interests, please contact plaintiff's counsel, Eric J. Belfi or Sharon Lee, Rabin & Peckel LLP, 275 Madison Avenue, New York, NY 10016, by telephone at (800) 497-8076 or (212) 682-1818, by facsimile at (212) 682-1892, or by e-mail at email@rabinlaw.com.
The complaint charges ESS and certain of its officers and directors with violations of the Securities Exchange Act of 1934. The complaint alleges that defendants' material omissions and the dissemination of materially misleading statements concerning the nature of ESS's revenue and business prospects caused ESS's stock price to become artificially inflated, inflicting damages on investors. Specifically, the complaint alleges that defendants failed to disclose the declining demand, downward price pressure, and increasing commodification of ESS's core product -- DVD processor chips -- as new competitors gained market share. The effect of these problems and the true nature of the Company's business prospects were revealed on the last day of the Class Period, and the next day the Company's stock plunged more than 30%.
Plaintiff is represented by the law firm of Rabin & Peckel LLP. Rabin & Peckel LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You can learn more information about Rabin & Peckel LLP at www.rabinlaw.com.
If you purchased ESS securities during the Class Period described above, you may, no later than November 12, 2002, move the Court to serve as lead plaintiff. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this action as a lead plaintiff online at www.rabinlaw.com. Contact plaintiffs' counsel Eric J. Belfi or Sharon Lee of Rabin & Peckel LLP to further discuss this action, this announcement, or your rights or interests.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca