BATON ROUGE, La., May 16, 2002 (PRIMEZONE) -- A shareholder sued Gerber Scientific, Inc. (NYSE:GRB) today, accusing the company and several top officers of defrauding investors, LeBlanc & Waddell LLC announced today.
The class-action complaint was filed in the U.S. District Court for the District of Connecticut. It seeks damages for violations of federal securities laws on behalf of all investors who bought Gerber Scientific common stock from May 27, 1999 through April 12, 2002 (the Class Period).
The complaint states that Gerber Scientific issued materially false and misleading information to the public during the Class Period, artificially inflating the price investors paid for company stock.
The plaintiff claims that the company, a supplier of automated manufacturing systems, repeatedly touted the MAXX system's success in the marketplace when in reality the product was defective. As a result of problems with the MAXX product and the economic downturn, Gerber Scientific knowingly or recklessly allowed inventory at its Sign Making and Specialty Graphics group to build up, the complaint says. In addition, according to the complaint, the company failed to properly write down the backlog or establish appropriate reserves in accordance with Generally Accepted Accounting Principles.
The problems came to light on April 15, 2002, the complaint states, when Gerber Scientific revealed that it expected to take a $12 million charge in the fourth quarter of 2002 composed principally of inventory write-downs. At the same time, the complaint says, Gerber Scientific announced an internal review of its financial reporting from January 1, 1998 through the current fiscal year. The internal review, the company revealed, came in response to a Securities and Exchange Commission investigation of the company's inventory and reserve accounting practices and related disclosures.
Following the company's disclosures, Gerber's stock price fell 11%, from a close of $7.85 on April 12, 2002 to a close of $6.99 on April 15, 2002.
If you purchased Gerber Scientific common stock during the period May 27, 1999 through April 12, 2002, you may wish to contact the following attorneys at LeBlanc & Waddell LLC to discuss your rights and interests.
Roger LeBlanc, Esq. Chad A. Dudley, Esq. LeBlanc & Waddell, LLC 5353 Essen Lane, Suite 420 Baton Rouge LA 70809 rogerleblanc@lw-law.net (800) 988-3514
If you wish to apply to be lead plaintiff in this action, a motion must be filed on your behalf with the court no later than June 17, 2002. You may contact the attorneys at LeBlanc & Waddell LLC to discuss your rights regarding the appointment of lead plaintiff and your interest in the class action. You may also retain counsel of your choice. To be a member of the class, however, you need not take any action at this time.
With offices in Baton Rouge, New Orleans, Shreveport, Monroe and Slidell, Louisiana, LeBlanc & Waddell, LLC represents investors in securities class action lawsuits and has experience in prosecuting class actions. The firm prides itself on its responsiveness to shareholders and their needs in each case.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca