ATLANTA, May 14, 2002 (PRIMEZONE) -- Holzer & Holzer announced today that a class action has been commenced in the United States District Court for the Northern District of California on behalf of purchasers of JDS Uniphase Corp. (Nasdaq:JDSU) ("JDS Uniphase" or the "Company") common stock during the period between July 27, 1999 and July 26, 2001 inclusive (the "Class Period"). A copy of the complaint filed is available from the Court or by contacting Holzer & Holzer (toll-free) at (888) 508-6832 or by sending an e-mail to michaelfisteljr@msn.com.
The complaint alleges that JDS Uniphase, certain of its officers and directors and its controlling shareholder violated the Securities Exchange Act of 1934. The complaint alleges that during the Class Period, defendants were motivated to inflate the value of JDS Uniphase stock so that the Company could make acquisitions using stock and so the individual defendants, who are the top officers and directors of JDS Uniphase, could sell their shares. During the Class Period, alleges the complaint, defendants represented that demand was accelerating and the Company's only problem was its ability to manufacture enough product to meet demand. The complaint alleges that defendants represented that they had outstanding visibility, including demand for the Company's products through the end of fiscal 2001 ("F01," ended on June 30, 2001), and that JDS Uniphase had 80 engineers whose job it was to monitor customers and their inventory levels and as a result, JDS Uniphase would learn about any slowdown in demand early. The complaint also alleges that the Company misrepresented the success of its largest acquisitions, including Optical Coating Labs, Cronos Integrated Microsystems, E-Tek Dynamics and SDL Inc. The complaint alleges that as a result of these positive statements, JDS Uniphase stock traded as high as $146.32.
The complaint further alleges that the Individual Defendants and its controlling shareholder took advantage of the inflation, selling or disposing of 25.5 million shares of their JDS Uniphase stock for proceeds of $2.1 billion. Then, the complaint alleges, on July 26, 2001, JDS Uniphase announced the restatement of its 3rdQ F01 results, the write-off of $44 billion in goodwill associated with its acquisitions, inventory write-downs and that F01 EPS would be only $0.16 and that it would incur a loss of $0.15 in F02. On this news, alleges the complaint, JDS Uniphase shares dropped to as low as $7.90 -- or more than 94% lower than the Class Period high of $146.32.
If you purchased securities in JDS Uniphase during the Class Period set forth above, you may, no later than May 20, 2002, move the Court to serve as a lead plaintiff in the action. In order to serve as a lead plaintiff, however, you must meet certain legal requirements. If you have any questions about your rights with respect to this lawsuit, you may contact Holzer & Holzer, Michael I. Fistel, Jr., Esq. (toll-free) at (888) 508-6832, or inquire via e-mail to michaelfisteljr@msn.com.
Holzer & Holzer has substantial experience representing investors in securities fraud class action lawsuits such as this. Holzer & Holzer is located in Atlanta, GA, but represents investors in securities class action lawsuits 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 the Firm.