PHILADELPHIA, Dec. 12, 2000 (PRIMEZONE) -- The law firm of Spector, Roseman & Kodroff, P.C. announces that a class action lawsuit has been commenced in the United States District Court for the District of Massachusetts against defendants PRI Automation, Inc. ("PRI" or the "Company") (Nasdaq:PRIA), Amram Rasiel, Mitchell G. Tyson, and Mordechai Wiesler, on behalf of purchasers of the common stock of PRI between January 27, 2000 and September 11, 2000, inclusive (the "Class Period").
The action seeks damages for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10 b-5 promulgated thereunder. The complaint alleges that PRI promoted itself as a leading supplier of factory automation systems for semiconductor manufacturers. Throughout the Class Period, defendants represented that the Company was ramping up production of its state-of-the-art Turbostocker XT. Defendants also repeatedly claimed that PRI was "well positioned" to meet the surging demand for factory automation systems and that PRI had an edge over its competitors due to its "technological leadership" and "specialized manufacturing skills." The complaint alleges that, as result of these misrepresentations, PRI's share price increased, from $75.43 at the commencement of the Class Period to a Class Period high closing price of $89.56 on March 9, 2000. Company insiders took advantage of the artificial inflation of the Company's stock price; between March 1 to March 15, 2000, when as a result of defendants' misrepresentations, PRI stock was trading at or near the Class Period high, insiders sold 36,600 PRI shares for proceeds of $3,214,800. In addition, prior to the disclosure of the adverse facts, PRI completed a public offering of 1,705,000 shares netting proceeds of approximately $85.1 million for the Company and $18.5 million PRI insiders.
The complaint alleges that, unbeknownst to investors, PRI was experiencing significant and material manufacturing problems and that therefore, PRI was not "well positioned" to take advantage of the surging demand for automation systems. New information emerged on September 11, 2000 when, after the close of trading, defendants disclosed in a conference call with analysts, and in a press release, that it was having "manufacturability, capacity and supply chain problems" in its Factory Systems Division relating to the new Turbostocker XT, which had been scheduled to transition into high volume production during the quarter. Defendants warned that, as a result of these problems, they expected PRI's net income for the quarter to be breakeven, not counting one-time special charges, down from net income of $9.8 million, or $0.38 per share in the third quarter.
On news of PRI's earnings warning, the Company's shares fell 39% in a single day, from a closing price of $42.68 on September 11, 2000 to a closing price of $25.87 on September 12, 2000, making PRI one the day's five biggest Nasdaq losers.
If you purchased the common stock of PRI between January 27, 2000 and September 11, 2000, you may, no later than January 19, 2001, move the court to serve as lead plaintiff of the class, if you choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Spector, Roseman & Kodroff, P.C., or other counsel of your choice, to serve as your counsel in this action.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via E-mail at classaction@spectorandroseman.com. For more detailed information about the firm please visit its website at http://www.spectorandroseman.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania and San Diego, California, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.