LITTLE ROCK, Ark., May 3, 2002 (PRIMEZONE) -- The Emerson Firm announced today that a class action has been filed in the United States District Court for the Eastern District of New York on behalf of purchasers of Gilat Satellite Networks, Ltd. ("Gilat" or the "Company") (Nasdaq:GILTF) common stock during the period between November 13, 2000 and October 2, 2001, inclusive (the "Class Period"). A copy of the complaint filed in this action is available from the Court, or can be obtained from the Firm.
The complaint charges Gilat and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that defendants knew or recklessly disregarded, yet covered up the fact, that the demand for and acceptance of Gilat's products and the products of its subsidiary, StarBand Communications, Inc., were greatly overstated, that Gilat was having difficulty manufacturing and selling its chief product, Very Small Aperture Terminal (VSAT) profitably, that Gilat's purported gross profit margins were false, that Gilat was materially understating its costs and expenses and that Gilat, accordingly, would have to take massive charge-offs, numbering in the hundreds of millions of dollars in the future. Plaintiff claims that defendants' material omissions and the dissemination of materially false and misleading statements caused Gilat's stock price to become artificially inflated, inflicting enormous damages on investors.
If you bought Gilat common stock between November 13, 2000 and October 2, 2001 inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than May 10, 2002. If you are a member of this class, you can join this class action by contacting The Emerson Firm. Any member of the purported class may move the Court to serve as lead plaintiff through The Emerson Firm or other counsel of their choice, or may choose to do nothing and remain an absent class member.
The Emerson Firm has substantial experience representing investors in securities fraud class action lawsuits such as this. In fact, the Firm was recently appointed by a Court in Houston to the Plaintiffs' Counsel Steering committee prosecuting the Enron retirement plan litigation. The firm has offices in Texas and Arkansas, but represents investors throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.