ATLANTA, Aug. 30, 2002 (PRIMEZONE) -- Notice is hereby given that Chitwood & Harley has filed a class action lawsuit in the United States District Court for the Northern District of California, on behalf of purchasers of the common stock of HPL Technologies, Inc. ("HPL" or the "Company") (Nasdaq:HPLAE) between July 31, 2001 and July 18, 2002 (the "Class Period") for violations of Sections 11 and 15 of the Securities Act of 1933 and Sections 10(b) and 20(a) of the Securities Exchange Act of 1934.
The Complaint alleges that HPL, a provider of yield optimization software solutions to semiconductor companies, issued false and misleading statements during the Class Period. On July 31, 2001, HPL became a public company through an IPO of 6 million shares at $11.00 per share, raising proceeds of $69.1 million. The IPO was accomplished pursuant to a Prospectus and Registration Statement filed with the SEC. Those documents provided the details of the Company's revenue recognition policy, which purported to be in conformance with SEC guidelines for software revenue recognition. In each of the Company's four subsequent quarterly reports (its first, second, third, and fourth quarter reports of its fiscal year ended March 31, 2002), it reported increasing net sales and income, and made positive statements attributing its increasing revenues to the ongoing need for its software.
On July 19, 2002, HPL announced that it was looking into "financial and accounting irregularities involving revenue reported during prior periods." The Company stated, in part, "the Company believes that a material amount of revenue was improperly recognized during one or more earlier periods in connection with sales to an international distributor." As a result of Defendants' false and misleading statements HPL's stock plunged 72%, to as low as $4 per share, before trading was halted. Trading in the stock has not resumed.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired the common stock of HPL during the Class Period. If you bought or otherwise acquired common stock of HPL between July 31, 2001 and July 18, 2002, you may request that the Court appoint you as lead plaintiff. A lead plaintiff is a person who acts on behalf of other class members in directing the litigation. Any member of the proposed class who wishes to move the Court to serve as lead plaintiff must do so no later than September 21, 2002. In order to serve as lead plaintiff, you must meet certain legal requirements.
Plaintiff in this case is represented by Chitwood & Harley, an Atlanta law firm that concentrates its practice in representing victims of securities fraud and corporate mismanagement, as well as other complex litigation. Chitwood & Harley has been appointed lead counsel in major actions throughout the United States in both federal and state courts and has been instrumental in recovering billions of dollars on behalf of its clients.
If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, you may contact Nikole Davenport at 1-888-873-3999 (toll-free) or by e-mail at nmd@classlaw.com, CHITWOOD & HARLEY, 2900 Promenade II, 1230 Peachtree Street, N.E., Atlanta, Georgia 30309. For more information about Chitwood & Harley, please visit our website at www.classlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca