HARTFORD, Conn., May 13, 2002 (PRIMEZONE) -- A federal class action claims Gerber Scientific, Inc. (NYSE:GRB) and several top officers defrauded investors by releasing materially false and misleading information about the company, Berman DeValerio Pease Tabacco Burt & Pucillo said today.
The lawsuit was filed May 8, 2002 in the U.S. District Court for the District of Connecticut. It seeks damages for violations of federal securities laws on behalf of all investors who bought Gerber Scientific common stock from May 27, 1999 through April 12, 2002 (the Class Period).
Berman DeValerio has represented investors in class actions for 20 years. To review the complaint and learn more about becoming a lead plaintiff, visit the firm's Website at www.bermanesq.com.
The complaint states that Gerber Scientific issued materially false and misleading information to the public during the Class Period, artificially inflating the price investors paid for company stock.
The plaintiff claims that the company, a supplier of automated manufacturing systems, repeatedly touted the MAXX system's success in the marketplace when in reality the product was defective. As a result of problems with the MAXX product and the economic downturn, Gerber Scientific knowingly or recklessly allowed inventory at its Sign Making and Specialty Graphics group to build up, the complaint says. In addition, according to the complaint, the company failed to properly write down the backlog or establish appropriate reserves in accordance with Generally Accepted Accounting Principles.
The problems came to light on April 15, 2002, the complaint states, when Gerber Scientific revealed that it expected to take a $12 million charge in the fourth quarter of 2002 composed principally of inventory write-downs. At the same time, the complaint says, Gerber Scientific announced an internal review of its financial reporting from January 1, 1998 through the current fiscal year. The internal review, the company revealed, came in response to a Securities and Exchange Commission investigation of the company's inventory and reserve accounting practices and related disclosures.
Following the company's disclosures, Gerber's stock price fell 11%, from a close of $7.85 on April 12, 2002 to a close of $6.99 on April 15, 2002.
If you purchased Gerber Scientific common stock during the period May 27, 1999 through April 12, 2002, you may wish to contact the following attorneys at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
Alicia M. Duff, Esq. Michael G. Lange, Esq. One Liberty Square Boston, MA 02109 (800) 516-9926 law@bermanesq.com
You may also visit the firm's Website at www.bermanesq.com.
If you wish to apply to be lead plaintiff in this action, a motion must be filed on your behalf with the court no later than June 17, 2002. You may contact the attorneys at Berman DeValerio to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. You may also retain counsel of your choice. To be a member of the class, however, you need not take any action at this time.
Berman DeValerio Pease Tabacco Burt & Pucillo (www.bermanesq.com) prosecutes class actions nationwide on behalf of institutions and individuals, chiefly victims of securities fraud, antitrust law violations and consumer fraud. The firm consists of 34 attorneys in Boston, San Francisco and West Palm Beach, Florida.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca