BALA CYNWYD, Pa., April 22, 2002 (PRIMEZONE) -- A shareholder sued Symbol Technologies, Inc. (NYSE:SBL) claiming that the company misled investors about its business and financial condition, as alleged in a complaint filed by the law firm of Schiffrin & Barroway, LLP.
The complaint was filed in the U.S. District Court for the Eastern District of New York and seeks damages for violations of federal securities laws on behalf of all investors who bought Symbol Technologies, Inc. securities between October 19, 2000 through February 13, 2002 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Symbol Technologies, Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint alleges that the New York-based Symbol Technologies, Inc. engaged in the following conduct which had the effect of increasing the Company's reported revenue and profits: (1) SBL booked as profit in the third quarter 2000 a one-time royalty payment in excess of $10 million, enabling the Company to make its third quarter projections; (2) SBL used expenses associated with its acquisition of Telxon to mask the fact that its sales were declining; and (3) SBL booked as having shipped in the first quarter of 2001 more than $40 million in inventory that included side provisions allowing customers to delay payments or return merchandise, or included products that "never left the warehouse". SBL subsequently had a second-quarter 2001 inventory write-down of $67.1 million after tax.
On February 13, 2002, Newsday, Inc. reported that SBL had engaged in the above-described accounting practices, received an inquiry letter from the Securities and Exchange Commission, and had hired accounting and consulting firm KPMG to review its sales process. The next day, SBL announced it was lowering its outlook for 2002 earnings and that its Chief Executive Officer would retire in May 2002. In response to the Newsday article and the Company's announcements, the price of SBL stock plunged more than 53% from an opening price of $14.15 on February 14, 2002 to a low of $6.60 on February 15, 2002 on unusually heavy trading volume.
If you purchased Symbol Technologies, Inc. securities between October 19, 2000 and February 13, 2002, you may be a member of the class and have until May 6, 2002 to move the court to become a lead plaintiff. To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.