NEW YORK, Sept. 5, 2002 (PRIMEZONE) -- Kaplan Fox (kaplanfox.com) has filed a class action suit against HPL Technologies, Inc. ("HPL" or the "Company") (Nasdaq:HPLAE) and certain of its officers and directors, in the United States District Court for the Northern District of California. This suit is brought on behalf of all persons and entities who purchased or otherwise acquired HPL securities between July 31, 2001 and July 18, 2002, inclusive (the "Class Period").
The complaint alleges that HPL and certain of its officers and directors violated the federal securities laws by issuing false and misleading statements, including false financial statements, during the class period. On July 31, 2001, HPL became a public company through an IPO of 6 million shares at $11.00 per share, raising proceeds of $69.1 million. The IPO was accomplished pursuant to a Prospectus and Registration Statement filed with the SEC. Those documents provided the details of the Company's revenue recognition policy, which purported to be in conformance with SEC guidelines for software revenue recognition.
In each of the Company's four subsequent quarterly reports (its first, second, third, and fourth quarter reports of its fiscal year ended March 31, 2002), it reported increasing net sales and income, and made positive statements attributing its increasing revenues to the ongoing need for its software.
As a result of HPL's false financials and false and misleading statements, its stock traded as high as $17.85 per share during the Class Period. During this period, Defendants sold 85,500 shares of their individual shares. Also during the Class Period, HPL acquired three companies using its stock as consideration.
On July 19, 2002, HPL announced that it was looking into "financial and accounting irregularities involving revenue reported during prior periods." The Company stated, in part, "the Company believes that a material amount of revenue was improperly recognized during one or more earlier periods in connection with sales to an international distributor." As a result of Defendants' false and misleading statements HPL's stock plunged 72%, to as low as $4 per share, before trading was halted. Trading in the stock has not resumed.
Plaintiff seeks to recover damages on behalf of the Class and is represented by Kaplan Fox & Kilsheimer LLP. Our firm, with offices in New York, San Francisco, Chicago and New Jersey, has many years of experience prosecuting investor class actions and actions involving financial fraud. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com
If you are a member of the Class, you may move the court no later than September 20, 2002 to serve as a lead plaintiff for the Class. In order to serve as a lead plaintiff, you must meet certain legal requirements.
If you have any questions about this Notice, the action, your rights, or your interests, please e-mail us at mail@kaplanfox.com or contact:
Frederic S. Fox, Esq. Jonathan K. Levine, Esq. Donald R. Hall, Esq. Kaplan Fox & Kilsheimer LLP 805 Third Avenue, 22nd Floor New York, NY 10022 (800) 290-1952 (212) 687-1980 Fax: (212) 687-7714 E-mail address: mail@kaplanfox.com Laurence D. King, Esq. Kaplan Fox & Kilsheimer LLP 601 Montgomery Street San Francisco, CA 94111 (415) 772-4700 Fax: (415) 772-4707 E-mail address: mail@kaplanfox.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca