BALA CYNWYD, Pa., April 10, 2003 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Southern District of New York on behalf of all purchasers of the common stock of Nam Tai Electronics, Inc. ("Nam Tai" or the "Company") (NYSE:NTE) from December 3, 2002 through February 14, 2003, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
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 between December 3, 2002, through February 14, 2003, thereby artificially inflating the price of Nam Tai common stock. Throughout the Class Period, as alleged in the Complaint, defendants issued numerous statements regarding the Company's increasing financial performance. The Complaint alleges that these statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (i) that the Company had materially overstated its net income; (ii) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (iii) that as a result, the value of the Company's net income and financial results were materially overstated at all relevant times.
On February 18, 2003, the Company shocked the market by announcing that it would be moving "a $1.5 million charge related to its JIC unit from its fourth quarter to its second quarter." The Company stated that "it determined the noncash charge, for the creation of a minority interest in its JIC unit, should have been reflected in the period when the minority interest was created." As a result, the Company's second-quarter earnings have been revised to $3.8 million, from an originally reported $5.3 million. Following this announcement, shares of Nam Tai stock fell from $33.41 per share on February 14, 2003, to $27.65 per share on February 18, 2003, on volume of 752,000 shares traded.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/cgi/signup.cgi.
If you are a member of the class described above, you may, not later than April 22, 2003, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.