CHICAGO, Sept. 19, 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 Northern District of California on behalf of purchasers of the securities of HPL Technologies, Inc. (Nasdaq:HPLAE) ("HPL" or the "Company") between July 31, 2001 and July 18, 2002, inclusive ("Class Period").
It has been alleged that HPL, David Y. Lepejian, HPL's former Chairman and CEO, and Ita Geva, HPL's former Chief Financial Officer, violated the federal securities laws by issuing a series of materially false and misleading statements to the market, which had the effect of artificially inflating the market price of HPL stock.
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 HPL.
The complaint charges HPL and certain of its officers and directors with violations of the Securities Exchange Act of 1934. HPL is a provider of yield optimization software solutions to enable semiconductor companies to enhance efficiency in the production process. On 7/31/01, HPL completed its initial public offering ("IPO") of 6.9 million shares (including the overallotment) 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 Fiscal Year 2002.
The complaint 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 7/19/02, 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 purchased HPL securities during the period from July 31, 2001 through July 18, 2002 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 September 23, 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