PHILADELPHIA, May 24, 2001 (PRIMEZONE) -- The law firm of Berger & Montague, P.C. (http://www.investorprotect.com) filed a class action suit on behalf of an investor against NCI Building Systems, Inc. ("NCI" or the "Company") (NYSE:NCS) and two of its principal officers in the United States District Court for the Southern District of Texas on behalf of all persons or entities who purchased NCI securities during the period from August 25, 1999, through April 12, 2001, inclusive (the "Class Period").
The complaint charges defendants with violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 for knowingly or recklessly engaging in improper accounting practices that forced the Company to restate its financial statements for the fiscal year that ended October 31, 2000, and for the quarter that ended January 31, 2001. In addition, the Company said that those same "accounting errors" could result in changes to financial statements for the third and fourth quarters of 1999. Furthermore, NCI said that a computer system installed in May of 1999 routinely processed some accounting entries incorrectly -- and that employees later altered the Company's books manually to mask the errors made by the automated system. The Company says it fired the employees responsible for the accounting irregularities.
News of the accounting errors sent NCI's share price down 32%, from a closing price of $18 19/64 a share on April 12, 2001, to $12 29/64 a share at the close of the next trading day, April 16, 2001.
The complaint alleges that as a result of defendants' conduct, plaintiff and other members of the Class suffered damages. The lawsuit seeks to recover losses suffered by individual and institutional investors who purchased the Company's securities during the Class Period at artificially inflated prices.
If you purchased NCI securities during the period from August 25, 1999 through April 12, 2001, inclusive, you may, no later than June 19, 2001, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class members(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth. If you have sustained substantial losses in NCI securities during the Class Period, please contact Berger & Montague, P.C. at investorprotect@bm.net for a more thorough explanation of the Lead Plaintiff selection process.
The law firm of Berger & Montague, P.C. has more than 50 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries of several billion dollars to investors. The firm is currently representing investors as lead counsel in actions against Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office Solutions, Inc. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example:
"Class counsel did a remarkable job in representing the class interests." In Re: IKON Offices Solutions Securities Litigation. Civil Action No. 98-4286(E.D.Pa.) (partial settlement for $111 million approved May, 2000).
"...[Y]ou have acted the way lawyers at their best ought to act. And I have had a lot of cases...in 15 years now as a judge and I cannot recall a significant case where I felt people were better represented than they are here ... I would say this has been the best representation that I have seen." In Re: Waste Management, Inc. Securities Litigation, Civil Action No. 97-C 7709 (N.D. Ill.) (settled in 1999 for $220 million).
If you purchased NCI securities during the Class Period, or have any questions concerning this notice or your rights with respect to this matter, please contact:
Sherrie R. Savett, Esquire Michael T. Fantini, Esq. Kimberly A. Walker, Investor Relations Manager Berger & Montague, P.C. 1622 Locust Street Philadelphia, PA 19103 Phone: 888-891-2289 or 215-875-3000 Fax: 215-875-5715 Website: http://www.investorprotect.com e-mail: InvestorProtect@bm.net
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca