SAN JOSE, Calif., Aug. 29, 2002 (PRIMEZONE) -- In an effort to recoup their losses, shareholders are pursuing a class action against HPL Technologies, Inc. (Nasdaq:HPLA), the law firm of Berman DeValerio Pease Tabacco Burt & Pucillo said today.
The investors filed a complaint July 29 accusing HPL and certain of its top officers of pumping up the company's stock price by artificially inflating revenue. The action, assigned the case number C-02-3665-MJJ, is pending in U.S. District Court for the Northern District of California. It seeks damages for violations of federal securities laws on behalf of all investors who bought HPL common stock from July 31, 2001 through July 18, 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, please visit the firm's website at www.bermanesq.com.
According to the lawsuit, HPL issued a series of false and misleading financial statements to the public during the Class Period, which led investors to believe that the San Jose-based company had generated millions of dollars more revenue than it actually had.
HPL's accounting woes began to surface on July 19, 2002 when it announced that its audit committee was investigating financial and accounting irregularities involving purported sales to an international distributor. In its news release, HPL also said it had fired its chairman and chief executive officer. The complaint says HPL's stock fell 72% on the news, dropping from the previous day's closing price of $14.10 to a low of $4 before Nasdaq halted trading in its stock. Trading has not yet resumed.
According to the lawsuit, HPL later revealed during a July 22, 2002 conference call with investors that $11 million of the $13.7 million in revenue it had reported in the quarter ended March 31, 2002 was based on "fictitious transactions that were supported by a trail of falsified documentation." According to the complaint, all the fictitious transactions were reported as sales to HPL's distributor. In fact, the distributor never agreed to enter into those transactions, the complaint says. In the conference call, HPL admitted that similar transactions may have been booked in prior quarters and that the company would have to restate its financial results for fiscal 2002 and possibly for 2001.
The lawsuit also accuses some company executives of taking personal advantage of the inflated stock price they allegedly helped to create by selling 85,500 shares of their individual holdings during the Class Period.
If you purchased HPL Technologies, Inc. common stock during the period July 31, 2001 through July 18, 2002, you may wish to contact the following attorney at Berman DeValerio Pease Tabacco Burt & Pucillo to discuss your rights and interests.
Joseph J. Tabacco, Jr., Esq. 425 California Street Suite 2025 San Francisco, CA 94104 (415) 433-3200 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 September 23, 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 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 http://www.primezone.com/ca