NEW YORK, April 25, 2002 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was filed on April 18, 2002 in the United States District Court for the District of Connecticut on behalf of all purchasers of the securities of Gerber Scientific, Inc. ("Gerber Scientific" or the "Company") (NYSE:GRB) between May 27, 1999 and April 12, 2002, inclusive (the "Class Period"). A copy of the complaint filed in this action can be viewed on the firm's website at www.faruqilaw.com
The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of false and misleading press releases concerning Gerber Scientific's financial condition and business prospects. The complaint alleges, throughout the Class Period, that Gerber Scientific was employing improper inventory and reserve accounting practices in violation of Generally Accepted Accounting Principals ("GAAP"). As a result, the price of the Company's common stock was artificially inflated throughout the Class Period, reaching as high as $24.50 per share. However, on April 15, 2002, Gerber Scientific announced that it expected to take a $12 million pre-tax charge in its fiscal fourth quarter, the period ending April 30, 2002. Moreover, the Company noted that in response to an investigation by the SEC into its inventory and reserve accounting practices, it was conducting an internal review of its financial reporting for the period January 1, 1998 through April 30, 2002. The Company further stated that its investigation is ongoing and once it has been completed, the Company will likely restate its financial results. In response, the stock price of Gerber Scientific plummeted to $6.99 per share, a decline of more than 71% from its Class Period high.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Gerber Scientific securities between May 27, 1999 and April 12, 2002, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the "Join Class Action" section of our website at www.faruqilaw.com
If you purchased Gerber Scientific securities during the Class Period, you may, not later than June 17, 2002, 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. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
ANTHONY VOZZOLO, ESQ. FARUQI & FARUQI, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 e-mail (Avozz@faruqilaw.com)
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.