DOYLESTOWN, Pa., July 31, 2003 (PRIMEZONE) -- Hoffman & Edelson, LLC today announced that it has filed a class action lawsuit in the United States District Court for the Middle District of North Carolina on behalf of purchasers of the common stock of Cree, Inc. ("Cree" or the "Company") (Nasdaq:CREE) during the period from August 19, 1998 through June 13, 2003, inclusive (the "Class Period"), and who suffered damages thereby.
The complaint charges that Cree and certain of its officers and directors violated the Securities Exchange Act of 1934. The complaint alleges that during the Class Period the Company issued statements that failed to disclose and/or misrepresented the following adverse facts, among others: (1) that the Company had materially overstated its net income and earnings per share; (2) that the defendants artificially boosted Cree's operating income through an undisclosed agreement with defendant Neal Hunter's brother, Jeff Hunter, the then chairman of C3, that required C3 to accept shipments of silicon carbide ("SIC") crystals for the manufacture of Moissanite gemstones far in excess of market demand; (3) that the defendants failed to properly disclose how officers and director's compensation was determined; (4) that the defendants failed to disclose in its registration statements and its prospectuses the proper use of the proceeds from these offerings. For example, in its January 14, 2000 prospectus, that Cree would invest $5 million of the offering proceeds in World Theatre, Inc.; (5) that the defendants were actively concealing these facts in order to manipulate the Company's earnings outlooks in order to maintain its favorable stock prices; (6) that the Company lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company; (7) that the Company's earnings projections were lacking in any reasonable basis when made; and (8) that the false and misleading information caused Cree's securities to trade at artificially high levels.
The market first learned of Cree's improper revenue recognition practices on June 13, 2003. On that date, Cree announced that Eric Hunter, 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. The market reacted quickly to this news, and the price of Cree common stock fell from $22.21 per share on June 12, 2003 to $18.10 per share on June 13, 2003, a drop of over 18%, on extremely heaving trading volume.
If you purchased the securities of Cree during the Class Period, you may, no later than August 18, 2003, request that the Court appoint you as lead plaintiff. A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, you must meet certain legal requirements. Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as lead plaintiff. You may retain Hoffman & Edelson, LLC, or other counsel of your choice, to serve as your counsel in this action.
If you wish to discuss this action or have any questions concerning this notice or your rights with respect to this matter, please contact Jerold B. Hoffman at Hoffman & Edelson, LLC, 45 W. Court Street, Doylestown, PA 18901 at 877-537-6532 (toll free), fax number 215-230-8735 or by e-mail at jhoffman@hofedlaw.com.
Hoffman & Edelson, LLC is also investigating potential claims against the following companies for the following class periods:
Company Class Lead Plaintiff
Period Deadline
Cryo-Cell March 16, 1999-May 20, 2003 August 4, 2003
International,
Inc.
(NASDAQ:CCCEC)
PolyMedica July 23, 2001-June 30, 2003 September 1, 2003
Corporation
(NASDAQ:PLMD)
The Singing August 9, 2001-June 27, 2003 September 1, 2003
Machine, Inc.
(AMEX:SMD)
IMPATH, Inc. Feb. 24, 2000-July 29, 2003 September 29, 2003
(NASDAQ:IMPH)
If you purchased any of the above-referenced securities during the above-referenced class periods and would like more information about your legal rights, please contact Jerold B. Hoffman at Hoffman & Edelson, LLC, 45 W. Court Street, Doylestown, PA 18901 at 877-537-6532 (toll free), fax number 215-230-8735 or by e-mail at jhoffman@hofedlaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca