HOUSTON, June 20, 2003 (PRIMEZONE) -- Emerson Poynter LLP, a securities class action trial law firm, announced today that a class action lawsuit has been filed in the United States District Court for the Middle District of North Carolina, on behalf of purchasers of Cree, Inc. ("Cree" or the "Company") (Nasdaq:CREE) publicly traded securities during the period between August 19, 1998 and June 13, 2003, inclusive (the "Class Period"). A copy of the complaint can be obtained from the Court or by making a toll-free call to the Firm.
During the Class Period, the Company issued statements that failed to disclose and/or misrepresented the following adverse facts, among others: (1) that the Company had materially overstated its net income and earnings per share; (2) that the defendants artificially boosted Cree's operating income through an undisclosed agreement with defendant Neal Hunter's brother, Jeff Hunter, the then chairman of C3, that required C3 to accept shipments of silicon carbide ("SiC") crystals for the manufacture of moissanite gemstones far in excess of market demand; (3) that the defendants failed to properly disclose how officers and director's compensation was determined; (4) that the defendants failed to disclose in its registration statements and its prospectuses the proper use of the proceeds from those offerings. For example, in its January 14, 2000 prospectus, Cree failed to disclose that it would invest $5 million of the offering proceeds in World Theatre, Inc.; (5) that the defendants were actively concealing these facts in order to manipulate the Company's earnings outlooks in order to maintain its favorable stock prices; (6) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; and (7) that the Company's earnings projections were lacking in any reasonable basis when made. On June 13, 2003, Eric Hunter, the former chief executive of Cree filed a $3 billion lawsuit against Cree and defendant Neal Hunter, his brother. Among the allegations contained in the lawsuit, Eric Hunter alleged that since as early as August 1995 and continuing until at least May 2003, Cree and the Individual Defendants engaged in a series of undisclosed corporate activities, which included, among other things, the filing of false and misleading statements to the public and the SEC with respect to the Company's secondary stock offerings, anticipated earnings and revenue, reported income and operating income. Market reaction to the news was swift. Shares of Cree fell 18.5% or $4.11 per share to close at $18.10 per share on heavy trading volume on June 13, 2003.
If you purchased Cree securities between August 19, 1998 and June 13, 2003, inclusive, and you wish to serve as lead plaintiff, you must move the Court through Emerson Poynter or other counsel of your choice, not later than August 18, 2003. If you are a member of this class, you can join this class action by contacting Emerson Poynter via e-mail or calling toll-free.
Emerson Poynter has substantial experience representing investors in securities fraud class action lawsuits such as this. The firm has offices in Houston, Texas and Little Rock, Arkansas, but represents investors throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call toll free or e-mail the firm. John G. Emerson, 830 Apollo Lane, Houston, TX 77058. Phone (281) 488-8854.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.