NEW YORK, July 19, 2001 (PRIMEZONE) -- Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the District of Massachusetts on behalf of all purchasers of Sipex Corp. ("Sipex" or the "Company") (Nasdaq:SIPX) common stock between July 20, 2000 and January 11, 2001, inclusive (the "Class Period"). A copy of the complaint filed in this action can be viewed on the firm's Website at www.faruqilaw.com.
The complaint charges defendants with violations of federal securities laws by, among other things, issuing a series of materially false and misleading press releases concerning Sipex's financial condition and business prospects. Specifically, the complaint alleges that the Company improperly recognized revenues during its second and third quarters of 2000 in order to meet revenue and earnings expectations during the Class Period, on products which were shipped to distributors months ahead of schedule and product-orders which had been canceled by distributors. As a result, the price of the Company's common stock was artificially inflated throughout the Class Period, allowing Sipex insiders to collectively sell over $35 million worth of shares in personally held Sipex Stock. On January 11, 2001, however, the Company shocked the market when it announced that its revenues for the fourth quarter of 2000 would be "lower than expected" as a result of higher than expected order cancellations and returns of products it already shipped and an inability to meet supposedly high-demand for products that it was unable to deliver to customers because of production problems. In response to this announcement, the stock price of Sipex plummeted in excess of 46% in one day, from $24.2344 per share on January 11, 2001, to $13 per share on January 12, 2001.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased or otherwise acquired Sipex securities between July 20, 2000 and January 11, 2001, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you wish to obtain information concerning joining this action you can do so under the "Join Lawsuit" section of our Website at www.faruqilaw.com
If you purchased Sipex securities during the Class Period, you may, not later than September 10, 2001, move the court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
ANTHONY VOZZOLO, ESQ. FARUQI & FARUQI, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 e-mail: Avozz@faruqilaw.com www.faruqilaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca