NEW YORK, Oct.25, 2001 (PRIMEZONE) -- Beatie And Osborn LLP, today announced that a class action lawsuit was filed in the U.S. District Court for the Eastern District of Michigan on behalf of all shareholders who purchased the common stock of Hayes Lemmerz International, Inc. (NYSE:HAZ) between June 8, 2000 and September 5, 2001 (the "class period").
The complaint alleges that the company violated the federal securities laws by issuing a series of material misrepresentations to the market concerning its financial results for fiscal 2000 and the first quarter of fiscal 2001. Specifically, the reported net loss of $41.8 million for fiscal 2000 was understated by at least 31% and was actually $56.4 million for that fiscal year period. Net loss for the first quarter of fiscal 2001, which was previously reported as $7.6 million, was understated by a staggering 350% and was actually $34.7 million for the quarter. The Company stated that its investigation relating to these financial misrepresentations would continue and that additional restatements/adjustments may be necessary. Also, as a result of these restatements, the Company revealed that it was in breach of certain financial covenants under its senior credit facility.
On September 5, 2001, when this adverse information was disclosed, the stock was halted from trading and opened the following day at $2.10 per share. This represented a 50% decline from the prior day's trading price of $4.15 per share and more than a 90% decline from the $20 per share Hayes stock had been trading at during the class period.
The class action seeks to recover the damages caused by the improper conduct described above. If you purchased Hayes stock during the period described above, you may, no later than November 5, 2001, seek to participate in this action as a lead plaintiff. If you have any questions, wish to discuss this matter, or would like to receive a copy of the complaint and the documents necessary to participate as a lead plaintiff, you may contact:
Daniel A. Osborn, Esq. Beatie And Osborn LLP 521 Fifth Avenue, 34th Floor New York, New York 10175 Toll Free No.: 800-891-6305 Tel. No.: 212-888-9000 Fax No.: 212-888-9664 E-mail: clientrelations@bandolaw.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca