ATLANTA, March 28, 2003 (PRIMEZONE) -- Chitwood & Harley announces that it has filed a class action lawsuit in the United States District Court for the Northern District of California, on behalf of purchasers of securities of Solectron Corporation, (NYSE:SLR) between September 17, 2001 and September 26, 2002, (the "Class Period"). The suit is brought against Solectron Corporation and certain of its officers and directors. A copy of the complaint is available on our website, www.classlaw.com. The deadline to file lead plaintiff papers, for those class members wishing to serve in this capacity, is May 5, 2003.
There are certain legal requirements to serve as lead plaintiff, which we would be happy to discuss with you. Any member of the purported class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member. 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 Lauren Antonino or Jennifer Morris at 1-888-873-3999 (toll-free) or by e-mail at jlm@classlaw.com. You may also contact us through our website, www.classlw.com, by clicking on Solectron Corporation.
The Complaint alleges that defendants issued numerous statements reporting artificially inflated financial results. The Complaint further alleges that these statements were materially false and misleading because they failed to disclose and/or misrepresented several adverse facts, such as that the Company possessed tens of millions of dollars of obsolete and unsaleable inventory in its Technology Solutions division which would need to be written down. Solectron's reported financial results were thereby artificially inflated at all times during the Class Period. As a result of the Company's failure to writedown its inventory in a timely manner, the financial statements published by Solectron during the Class Period were not prepared in accordance with Generally Accepted Accounting Principles and were materially false and misleading. If the Company had properly accounted for its inventory, it would have missed its guidance severely.
On September 26, 2002, following the close of the market, Solectron issued a press release announcing its financial results for the fourth quarter of 2002 and fiscal year 2002. The Company further reported a booking of a pre-tax charge of $97 million to reserve for inventory revaluation and write-off. Solectron ascribed most of the charge to "inventory risk assumed by Solectron's product-oriented Technology Solutions business unit ..." Shares of Solectron common stock dropped from their previous close, following that announcement, as well as other disclosures.
Chitwood & Harley LLP is a class action 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 and has been instrumental in recovering billions of dollars on behalf of its clients. Clients and courts alike have praised the results achieved by Chitwood & Harley. Recently, the federal judge in In re BankAmerica Securities Litigation, which resulted in the highest recovery last year in a securities class action, commented favorably on counsel's performance stating: "Class members were well served by experienced attorneys who, through considerable time and effort, obtained a significant recovery for their clients," and, "(a)s the Court has remarked throughout this litigation, class counsel ... have performed at exceptionally high levels, and all parties have been exceedingly well represented."
For more information about Chitwood & Harley, please visit our website at www.classlaw.com or contact Jennifer Morris at 1-888-873-3999 (toll-free), by e-mail at jlm@classlaw.com or at 1230 Peachtree Street, Suite 2300, Atlanta, Georgia 30309.