NEW YORK, July 23, 2002 (PRIMEZONE) -- The law firm of Abbey Gardy, LLP has filed a class action against HPL Technologies Inc. ("HPL Technologies" or the "Company") (Nasdaq:HPLA) and David Lepejian, HPL's CEO and Chairman and Ita Geva, HPL's Chief Financial Officer in the United States District Court for the Northern District of California, San Jose Division, on behalf of all persons or entities who purchased HPL Technologies securities during the period from July 31, 2001, the day HPL commenced trading on the Nasdaq to July 19, 2002, inclusive, the day HPL announced that it had initiated an investigation into financial and accounting irregularities (the "Class Period").
The Complaint alleges 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 material misrepresentations to the market during the Class Period, thereby artificially inflating the price of HPL Technologies securities.
The complaint alleges that throughout the Class Period defendants engaged in a massive fraud to, among other things, inflate HPL's revenues. The complaint alleges that defendant made a series of misleading statement starting on July, 31, 2001. The complaint alleges that the press releases dated August 17, 2001, October 24, 2001, January 29, 2002, and May 9, 2002 were materially false and misleading. The complaint alleges that the company's Form 10-Qs for the first quarters ended June 30, 2001; September 30, 2001; and December 31, 2001 were materially false and misleading. In addition, the complaint alleges that the Company's Form 10-K for the fiscal year ended March 31, 2002 was materially false and misleading. The complaint alleges that each of these above referenced press releases and SEC filings materially misrepresented HPL's revenues and growth as ultimately admitted on July 19, 2002, the day the HPL announced that it had initiated an investigation into accounting irregularities.
Finally, HPL announced that it had uncovered a massive accounting fraud involving "fictitious transactions" and "falsified documents." The company said that what was reported as cash on its balance sheet "is not now, and may never have been in the Company's possession." HPL further reported that, "at least $11 million of the $13.7 million in revenue reported in the quarter ended March 31 was based on fake transactions with the company's Japanese distributor, Canon Sales, Co." The Company said that it will restate financial results for fiscal 2002 and may restate for fiscal 2001. The Company also announced that it has fired it CEO and Chairman; defendant David Lepejian, who apparently was a "central player" in the fraud. As a result of defendants' materially false and misleading statements the price of HDL common stock was inflated throughout the Class Period.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired HPL Technologies securities during the Class Period. If you purchased or otherwise acquired HPL securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased HPL securities during the Class Period, you may, no later than 60 days from today, request that the Court appoint you as lead plaintiff.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The law sets forth-specific criteria that a lead plaintiff must meet in order to adequately represent the interests of the class. In order to be appointed lead plaintiff, the Court must determine 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 plaintiffs." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
Abbey Gardy, LLP has been retained as one of the law firms to represent the Class. The attorneys at Abbey Gardy, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact Nancy Kaboolian, Esq. or Mark Gardy, Esq. of Abbey Gardy, LLP at (800) 889-3701 or or (212) 889-3700 or e-mail nkaboolian@abbeygardy.com.
PLEASE NOTE THAT OTHER FIRMS HAVE ISSUED NOTICES TO CLASS MEMBERS WITHOUT FIRST FILING AN ACTION AS REQUIRED. ABBEY GARDY, LLP HAS FILED A COMPLAINT STYLED CASDEN V. HPL TECHNOLOGIES, INC., DAVID Y. LEPEJIAN AND ITA GEVA, C-02-3510 (VRW).
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca