NEW YORK, July 17, 2002 (PRIMEZONE) -- The law firm of Wechsler Harwood Halebian & Feffer LLP ("Wechsler Harwood") announces that a class action lawsuit has been commenced on behalf of purchasers of the securities of PerkinElmer, Inc. ("PerkinElmer" or the "Company") (NYSE:PKI) between July 15, 2001 and April 11, 2002, inclusive, (the "Class Period').
The complaint charges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market during the Class Period. During the Class Period, the individual defendants and other PerkinElmer insiders sold 595,000 shares of PerkinElmer common stock, reaping gross proceeds in excess of $18.4 million.
According to the complaint, PerkinElmer issued numerous press releases during the Class Period which represented that: (a) the Company 's revenues and earnings would continue to increase; (b) the Company's transformation into a provider of health-related products and services was proceeding successfully; and (c) the Company would meet its financial performance targets for 2002.
The complaint alleges, however, that these and other representations were materially false and misleading because they failed to disclose that:
-- PerkinElmer was experiencing a decline in the demand for its
products, especially at its Optoeletronics division;
-- the Company was carrying tens of millions of dollars of obsolete
inventory on its books; and
-- the Company's expenses were soaring due to numerous acquisitions
and divestitures it had undertaken.
On March 1, 2002, PerkinElmer issued a press release revealing that 2002 first quarter revenues and earnings would be materially less than what the Company had represented only three weeks earlier. In reaction to the announcement, the price of PerkinElmer's common stock plummeted by 31%.
However, the full truth regarding PerkinElmer's business was not fully disclosed until April 11, 2002, when the Company issued a press release revealing that its reported earnings would break even, instead of meeting the previously projected target of $0.16 - $0.17 earnings per share that the Company reported on March 1, 2002. In reaction to this announcement, PerkinElmer's stock plummeted by another 28%, falling from $16.70 per share on April 10, 2002 to $12.04, on extremely heavy trading volume.
In order to be appointed lead plaintiff, the Court must determine, among other things, that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by whether or not you serve as a lead plaintiff.
If you wish to apply for lead plaintiff, a motion must be filed on your behalf with the Court no later than September 6, 2002.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whhf.com) has more information about the firm. If you wish to discuss this action, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood Halebian & Feffer LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 Patricia Guiteau, Wechsler Harwood Shareholder Relations Department: pguiteau@whhf.com.
More information on this and other class actions can be found on the Class Action Newsline at http://www.primezone.com/ca