NEW YORK, July 18, 2002 (PRIMEZONE) -- Flextronics International, Ltd. ("Flextronics" or the "Company") (Nasdaq:FLEX) and certain of its senior officers have been charged with violations of the federal securities laws in a class action complaint filed by Wolf Popper LLP (the "Complaint"). The lawsuit was brought on behalf of all persons who purchased or otherwise acquired the common stock of Flextronics between October 2, 2001 and June 3, 2002, inclusive (the "Class Period"). The Complaint, filed in the United States District Court for the Southern District of New York, Index Number 02 Civ. 5508, charges Flextronics and three of the Company's officers with violation of Sections 10(b) of the Securities Exchange Act of 1934.
The Complaint alleges that during the Class Period Flextronics consistently represented that its business was thriving, that it was using the difficult market conditions to increase market share and revenues, and that it expected to continue to do so in the foreseeable future. Defendants failed to disclose during the Class Period that the Company's business was experiencing a number of adverse factors which were negatively impacting its business and which would cause it to report declining financial results, materially less than the market expectations defendants had created. Specifically defendants failed to disclose that (i) Flextronics was experiencing declining sales as its business began to be affected by negative trends in its markets; (ii) many of Flextronics's customers were experiencing severe financial difficulty such that it was highly foreseeable that they would be unable to complete anticipated sales, thereby causing Flextronics to suffer a decline in its revenues; and (iii) though Flextronics had taken restructuring charges of almost $400 million in the second fiscal quarter of 2002, the period ended September 30, 2001, purportedly to finalize the Company's restructuring, defendants knew that as a result of the adverse business conditions the Company was experiencing, further restructuring would be necessary.
Wolf Popper LLP has extensive experience representing shareholders in class actions and has successfully recovered billions of dollars for defrauded investors and shareholders. The reputation and expertise of the firm in shareholder and other class action litigation has been repeatedly recognized by the courts, which have appointed the firm to major positions in complex multi-district and consolidated litigations. For more information about Wolf Popper please visit the firm's website at: www.wolfpopper.com.
Any member of the proposed class who desires to be appointed lead plaintiff in this action must file a motion with the Court no later than August 19, 2002. Class members must meet certain legal requirements to serve as a lead plaintiff. If you have questions or information regarding this action, or if you are interested in serving as a lead plaintiff, you may call or write:
Michael A. Schwartz, Esq. Telephone: 212.759.4600 Abigail Kowaloff, Investor Relations Toll Free: 877.370.7703 WOLF POPPER LLP 845 Third Avenue New York, NY 10022-6689 212.759.4600 Facsimile: 877.370.7704 E-Mail: IRRep@wolfpopper.com Website: http://www.wolfpopper.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.