CHICAGO, June 27, 2002 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that class action lawsuits are pending in the United States District Court for the Southern District of New York on behalf of purchasers of the securities of Flextronics International Ltd. ("Flextronics" or the "Company") (Nasdaq:FLEX) between October 2, 2001 and June 4, 2002, inclusive ("Class Period").
It has been alleged that Flextronics; Michael E. Marks, Flextronic's Chief Executive Officer; Michael McNamara, President of American Operations of Flextronics; and Robert R. B. Dykes, Flextronic's Chief Financial Officer, 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.
According to the allegations, Flextronics failed to disclose that its business and operations were being adversely affected by a host of negative factors, including, but not limited to:
(i) Flextronics was experiencing declining sales as its business began to be affected by adverse market forces. Throughout the Class Period, defendants repeatedly emphasized that the Company was not being affected by the slowdown in the U.S. or global economy, when, in fact, it was;
(ii) Throughout the Class Period, many of Flextronics's customers were experiencing severe financial difficulty, making it highly foreseeable that they would not be able to complete anticipated sales, causing Flextronics to suffer a decline in its revenues. At all times throughout the Class Period, defendants lacked a reasonable basis upon which to publish and/or affirm the revenue guidance they provided to analysts and investors; and
(iii) Defendants had purposely and/or recklessly under-reported the amount of financing needed to complete the Company's restructuring and over-stated the status of the completion of this reorganization, as well as made false statements concerning the Company's financial and operational condition because it was critical that defendants raise cash by selling more equity during the upcoming months.
On June 4, 2002, the last day of the Class Period, defendants shocked the market when they finally revealed that the restructuring, which was purportedly paid for in October 2001 and substantially completed thereafter, was still far from complete. Defendants admitted that there were at least an additional $150 million in restructuring charges that they had to record. Defendants also stated that they could not possibly meet the Company's previous earnings and revenue forecasts for its first fiscal quarter 2003. In response to the announcement, Flextronics common stock fell from $12.32 per share to as low as $9.50 per share, a decline of almost 23%, on tremendous volume of 47 million Flextronics shares traded.
Much Shelist is currently investigating these claims. If you wish to discuss your rights and interests, or if you have information relevant to the lawsuit, you may contact Carol V. Gilden or Michael E. Moskovitz at Much Shelist Freed Denenberg Ament & Rubenstein, P.C., by calling a toll-free number 1-800-470-6824, or by sending an e-mail to investorhelp@muchshelist.com. Your e-mail should refer to Flextronics.
If you purchased Flextronics securities during the Class Period and if you meet certain other legal requirements, you may file a motion in the court where the lawsuit has been filed to serve as a lead plaintiff. You must file your motion no later than August 19, 2002.
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." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a 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).
Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States. The firm has successfully prosecuted cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.