NEW YORK, July 2, 2003 (PRIMEZONE) -- The following statement was issued today by the law firm of Wechsler Harwood LLP:
Notice is hereby given that a class action lawsuit was filed on behalf of all purchasers of the publicly traded securities of Cree, Inc. ("Cree" or the "Company") (Nasdaq:CREE) during the period between August 19, 1998 and June 13, 2003, inclusive (the "Class Period").
The case is currently pending in the United States District Court for the Middle District of North Carolina, against defendants and certain of its officers and directors alleging violations of the Federal Securities Laws. A copy of the Complaint is available from the Court or can be viewed on Wechsler Harwood web site at: www.whesq.com.
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 bought Cree publicly traded securities within the Class Period and you wish to serve as lead plaintiff, you must move the Court no later than August 18, 2003. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. 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 plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. You may retain Wechsler Harwood, or other counsel of your choice, to serve as your counsel in this action.
Wechsler Harwood LLP has extensive experience in prosecuting investor class actions involving financial fraud and has many years experience in prosecuting securities, antitrust and consumer class actions. For more information about Wechsler Harwood LLP and this matter, please visit our website at www.whesq.com. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400
Ramon Pinon, Wechsler Harwood Shareholder Relations Department: rpinon@whesq.com extension 283.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca