NEW YORK, Sept. 4, 2002 (PRIMEZONE) -- The law firm of Wechsler Harwood LLP ("Wechsler Harwood") announces that a class action has been commenced in the United States District Court for the Middle District of Florida on behalf of purchasers of Uniroyal Technology Corp. ("Uniroyal" or the "Company") (Nasdaq:UTCI) between February 8, 2000 and May 13, 2002, inclusive (the "Class Period") against defendants Uniroyal and certain of its officers.
The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market between February 8, 2000 and May 13, 2002. According to the complaint, defendants issued a series of press releases touting its financial stability and its acquisition of Sterling Semiconductor, while strategically positioning Uniroyal to increase its participation in the explosive compound semiconductor industry via internal growth. However, unbeknownst to the investing public that purchased Uniroyal stock during the Class Period: (i) Uniroyal was not a financially stable company; (ii) its acquisition of Sterling was not lucrative at all; and (iii) it was not strategically positioning Uniroyal to increase its participation in the explosive compound semiconductor industry via acquisition and internal growth. But for Uniroyal's financial support, Sterling would probably have been forced to seek protection under the bankruptcy laws. Sterling was a development stage company and not, as defendants touted, "a leading developer of silicon carbide technology and materials." Moreover, in order to materially inflate Uniroyal's net worth and further foster the illusion of growth, defendants agreed to pay an inflated price for Sterling with materially overvalued stock serving as currency.
On December 31, 2001, eighteen months after having acquired Sterling in exchange for stock, with a purported value of more than $40 million, the Company shocked the market by announcing that it recorded a write-down of Sterling goodwill of approximately $9,816,000. On January 2, 2002, Uniroyal stock closed at $1.69 down from $3.20 the previous day and substantially down from its class period high of $71.125 reached on February 23, 2000.
If you are a member of the Class described above, and if you meet certain other legal requirements, you may, no later than September 3, 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 (http://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 Craig Lowther, Wechsler Harwood Shareholder Relations Department: clowther@whhf.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca