NEW YORK, April 27, 2001 (PRIMEZONE) -- The following announcement was issued by the law firm of Faruqi & Faruqi, LLP:
Notice is hereby given that a class action lawsuit was commenced in the United States District Court for the Southern District of Texas on behalf of all purchasers of NCI Building Systems, Inc. ("NCI" or the "Company") (NYSE:NCS) securities between February 23, 2000 and April 12, 2001, inclusive (the "Class Period").
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. Besides issuing a series of false and misleading press releases concerning NCI's business and financial condition, the complaint specifically alleges that defendants had been understating their liabilities and engaged in improper accounting throughout the Class Period. As a result, the price of the Company's common stock was artificially inflated throughout the Class Period, allowing defendants to collectively sell over 381,000 shares of personally held NCI stock. However, the true state of the Company's finances were revealed when the Company disclosed on April 12, 2001 that it was restating its previously reported financial results for fiscal year ended October 31, 2000 and the first quarter of fiscal year 2001, due to accounting errors and improper accounting entries that understated certain liabilities related to the Company's inventories. Moreover, NCI stated that it might have to restate its financial statements for the third and fourth quarter of fiscal 1999. In response, the stock price of NCI plummeted 31% in one day on heavy trading volume.
Plaintiff seeks to recover damages on behalf of himself and all other individual and institutional investors who purchased NCI securities between February 23, 2000 and April 12, 2001, excluding defendants and their affiliates. Plaintiff is represented by Faruqi & Faruqi, LLP, a law firm with extensive experience in prosecuting class actions, and significant expertise in actions involving corporate fraud.
If you purchased NCI securities during the Class Period, you may, not later than April12, 2001, 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. If you wish to discuss this action, or have any questions concerning this notice or your rights or interests, please contact:
ANTHONY VOZZOLO, ESQ. FARUQI & FARUQI, LLP 320 East 39th Street New York, NY 10016 Telephone: (877) 247-4292 or (212) 983-9330 e-mail (FaruqiLawAV@aol.com)
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca