NEW YORK, Sept. 4, 2002 (PRIMEZONE) -- The law firm of Wechsler Harwood Halebian & Feffer LLP ("Wechsler Harwood") announces that a class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of HPL Technologies, Inc. ("HPL" or the "Company") (Nasdaq:HPLA) securities between July 31, 2001 and July 18, 2002, inclusive (the "Class Period") against defendants HPL and certain of its officers.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, and Sections 11, 12(a)(2) and 15 of the Securities Act of 1933 by issuing a series of material misrepresentations to the market during the Class Period, thereby artificially inflating the price of HPL securities.
The Complaint further alleges that HPL and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, on July 31, 2001, HPL completed its initial public offering ("IPO") of 6.9 million shares (including the over allotment) at $11.00 per share, raising net proceeds of $69.1 million. The IPO was accomplished pursuant to a Prospectus and Registration Statement filed with the SEC. These documents represented that the Company recognized revenue on sales to distributors only when the distributors sold the software license or services to their customers. Later, HPL reported favorable financial results for the 1stQ, 2ndQ, 3rdQ and 4thQ of F02.
The Complaint further alleges that as a result of HPL's favorable but false financials and false and misleading statements, its stock traded as high as $17.85 per share. Defendants took advantage of this inflation, selling 85,500 shares of their individual holdings. Then, on July 19, 2002, before the markets opened, HPL shocked the market with news that it was investigating accounting irregularities with respect to revenue recognition on shipments to distributors in prior quarters that its CEO had been fired and its CFO had been reassigned. On this news, HPL's stock collapsed 72% to as low as $4 per share, before trading was halted.
If you are a member of the Class described above, and if you meet certain other legal requirements, you may, no later than September 23, 2002, move the Court to serve as a lead plaintiff. 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." The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whhf.com) has more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood Halebian & Feffer LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.