BALA CYNWYD, Pa., July 12, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
A securities class action lawsuit pending in the U.S. District Court for the Southern District of New York claims that Flextronics International Ltd. (Nasdaq:FLEX) ("Flextronics" or the "Company") misled shareholders about its business and financial condition.
Plaintiff seeks damages for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (and/or the Securities Act of 1933) on behalf of all investors who bought Flextronics International Ltd. securities between October 2, 2001 through June 4, 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 Flextronics International Ltd. 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 Flextronics International Ltd. failed to disclose that its business and operations were being negatively affected by a host of adverse factors, including, but not limited to, the following: (a) that Flextronics was experiencing declining sales as its business began to be affected by adverse market forces. Throughout the Class Period, defendants repeatedly emphasized that the Company was not being affected by the slowdown in the U.S. or global economy, when, in fact, that was not true; (b) throughout the Class Period, many of Flextronics's customers were experiencing severe financial difficulty such that it was highly foreseeable that they would be unable to complete anticipated sales, thereby causing Flextronics to suffer a decline in its revenues. At all times throughout the Class Period, defendants lacked a reasonable basis upon which to publish and/or affirm the revenue guidance they provided to analysts and investors; and (c) defendants had purposely and/or recklessly under-reported the amount of financing needed to complete the Company's restructuring and over-stated the status of the completion of this reorganization, as well as made false statements concerning the Company's financial and operational condition because it was critical that defendants raise cash by selling more equity during the upcoming months.
On June 4, 2002, the last day of the Class Period, defendants shocked the market when they finally revealed that the restructuring, which was purportedly paid for in October 2001 and substantially completed thereafter, was still far from complete. Defendants now admitted that there were at least an additional $150 million in restructuring charges that must be recorded. In addition, defendants also stated that they could not possibly meet the Company's previous earnings and revenue forecasts for its first fiscal quarter 2003.
If you purchased Flextronics International Ltd. securities between October 2, 2001 through June 4, 2002, you may be a member of the class and have until August 19, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) 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.