NEW YORK, July 11, 2003 (PRIMEZONE) -- Notice is hereby given that a securities class action lawsuit was 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) between July 24, 2001 and June 13, 2003, inclusive (the "Class Period").
If you purchased Cree securities during the Class Period, you may, no later than August 18, 2003, move the court to serve as a lead plaintiff, provided you meet certain legal requirements. To serve as a Lead Plaintiff, you will be required to sign the Certification, as provided on our website at www.nyclasslaw.com/join.html.
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, thereby artificially inflating the price of Cree securities. The complaint charges 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 materially false and misleading statements to the market between July 24, 2001 and June 13, 2003. Specifically the complaint states that: 1) the Company failed to disclose that a material portion of the Company's revenues were generated from non "arms-length" sales to related entities that did not reflect the true demand for the Company's products; 2) the Company did not implement and maintain an adequate internal accounting control system; 3) since 2002, Cree's former President and CEO, Eric Hunter, had alleged to the Company's board of directors that the Company was improperly accounting for transactions with related entities and was issuing and filing materially false and misleading press releases and financial reports; and 4) a material portion of Cree's reported Class Period sales were improperly recognized and reported in the Company's financial statements in violation of Generally Accepted Accounting Principals.
The market first learned of Cree's improper revenue recognition practices on June 13, 2003, when Cree announced that its former CEO, President and Chairman had filed a private action accusing the Company and current Chairman, F. Neal Hunter, of misleading investors and the SEC by issuing false press releases and filing false financial statements. In the wake of this announcement, the price of Cree common stock fell sharply, from $22.21 per share on June 12, 2003 to $18.10 per share on June 13, 2003. This change represents a 18.5% drop in one day, on unusually high trading volume of almost 28 million shares.
Plaintiff seeks to recover damages on behalf of all purchasers or acquirers of Cree securities during the Class Period. Plaintiff is represented in this class action by the law firm of Bull & Lifshitz, LLP. Bull & Lifshitz, LLP has extensive experience in litigating investor class actions. For more information regarding Bull & Lifshitz, LLP, please view our website at www.nyclasslaw.com.
For an information package (www.nyclasslaw.com/infopackage.html) or if you wish to discuss this action, or have any questions concerning this notice of your rights or interests with respect to this matter, please contact Peter D. Bull, Esq. or Joshua M. Lifshitz, Esq., Bull & Lifshitz, LLP via telephone at (212) 213-6222, via fax at (212) 213-9405 or by email at counsel@nyclasslaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca