NEW YORK, Dec. 15, 2003 (PRIMEZONE) -- On December 11, 2003, Abbey Gardy, LLP commenced a Class Action lawsuit in the United States District Court for the Northern District of California, located at 450 Golden Gate Avenue, San Francisco and was assigned to Judge Ware. The action has been brought as a class action on behalf of a class (the "Class") of all persons who purchased or acquired securities of Silicon Image, Inc. ("Silicon" or the "Company") (Nasdaq:SIMGE) between April 15, 2002, the day the Company announced its financial results for its first quarter ended March 31, 2002 and November 15, 2003, the day the Company announced an investigation into its revenue recognition practices associated with its licensing transactions (the "Class Period").
The Complaint (No. C-03-5579) is captioned: Korman v. David Lee, Steve Tirado, Robert Gargus and Silicon Image, Inc. David Lee ('Lee") has been at all relevant times Defendant Silicon's Chairman; Steve Tirado ("Tirado") has been at all relevant times Silicon's President and Chief Operating Officer; and Robert Gargus ("Gargus") has been at all relevant times Silicon's Vice President and Chief Financial Officer. Silicon, Lee Tirado and Gargus are hereinafter referred to as the Defendants. 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, by issuing a series of material misrepresentations to the market during the Class Period thereby artificially inflating the price of Silicon securities.
The Complaint alleges that Defendants made a series of false and misleading statements starting on April 15, 2002. The Complaint alleges that the press releases issued on April 15, 2002, June 13, 2002, July 23, 2002, October 15, 2002, January 15, 2003, April 15, 2003, July 22, 2003, September 30, 2003 and October 19, 2003 were materially false and misleading. In additions, the Complaint alleges that the Company's Form 10-Q's and Form 10-K filed with the Securities and Exchange Commission ("SEC") on May 12, 2002, July 30, 2002, November 8, 2002, March 27, 2003, May 8, 2003, and August 14, 2003 were materially false and misleading. The Complaint alleges that each of these above referenced press releases and SEC filings were materially false and misleading because, during the Class Period defendants, had overstated Silicon's license revenue by improperly recognizing revenue that did not satisfy revenue recognition criteria. The Complaint also alleges that, as a result of the improper revenue recognition, the Company's net income and earnings were overstated and its financial statements were prepared in violation of General Accepted Accounting Principles ("GAAP"). In addition, the Complaint alleges that while in possession of material non public information that defendants Lee, Gargus and Tirado sold thousands of shares of their personally held Silicon stock. On November 14, 2003, Silicon announced that its Form 10-Q for the quarter ended September 30, 2003 would not be timely filed because an investigation into the Company revenue recognition practices associated with its licensing transaction. On this news, Silicon's shares fell more than 27.7% to close at $6.40.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Silicon securities during the Class Period. If you purchased or otherwise acquired Silicon securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased Silicon Image securities during the Class Period, you may, no later than February 13, 2004 request that the Court appoint you as lead plaintiff.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The law sets froth specific criteria that a lead plaintiff must meet in order to adequately represent the interests of the class. The law sets forth that the class member with the largest financial interest in the litigation is the most adequate shareholder to lead the litigation. In addition, 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 plaintiffs.'' Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
Abbey Gardy, LLP has been retained as one of the law firms to represent the Class. The attorneys at Abbey Gardy, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact Susan Lee at Abbey Gardy, LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.