BALA CYNWYD, Pa., April 11, 2003 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Northern District of California on behalf of all purchasers of the common stock of Affymetrix, Corporation ("Affymetrix" or the "Company") (Nasdaq:AFFX) from January 29, 2003 through April 3, 2003, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges Affymetrix with a violation of Section 10(b) of the Exchange Act and Rule 10b-5 promulgated thereunder and certain of its officers and directors with a violation of Section 20(a) of The Exchange Act. More specifically, on January 29, 2003, the Company issued a press release, announcing its financial results for the fourth quarter 2002 and fiscal year 2002, wherein it advised that the Company expected to achieve product revenue growth of 28% in 2003 and expected that product revenue for the first quarter of 2003 would range between $71-73 million.
However, these prospects lacked a reasonable basis as they failed to disclose that the Company was experiencing declining demands for its products and services, was taking numerous steps to hide the deterioration in its business, and would no longer be able to conceal the slowdown in its sales from investors. What is more shocking is that the Company, not less than three months after reporting their bright product revenue outlook, reported that its expectations for first quarter growth were significantly lower, such that product revenue growth would only be between $60-62 million. News of the lower product revenue figures sent the Company's common stock in a rapid decline. Additionally shocking is that about eleven days prior to the Company's announced low first quarter figures, GlaxoSmithKline PLC (who share a common director with Affymetrix) engaged in a sale of 4,736,254 shares of Affymetrix common stock, which resulted in a $124,557190.30 windfall for GlaxoSmithKline PLC.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/cgi/signup.cgi.
If you are a member of the class described above, you may, not later than June 10, 2003, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.