NEW YORK, August 14, 2003 (PRIMEZONE) -- Notice is hereby given that a securities class action lawsuit was filed in the United States District Court for the Northern District of California on behalf of purchasers of Read-Rite Corporation ("Read-Rite" or the "Company") (Pink Sheets:RDRTQ) securities, between October 30, 2001 and June 6, 2003, inclusive (the "Class Period").
If you purchased Read-Rite securities during the Class Period, you may, no later than September 5, 2003, move the court to serve as a lead plaintiff, provided you meet certain legal requirements. To serve as a Lead Plaintiff, you will be required to sign the Certification, as provided on our website at www.nyclasslaw.com/join.html.
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market between October 30, 2001 and June 6, 2003. Due to these misrepresentations, the price of Read-Rite securities became artificially inflated. Specifically, defendants failed to disclose that: 1) The Company's 40 GB/platter inventory was overstated by $16.7 million; 2) The Company's Philippine real estate holdings were overstated by approximately $6.8 million; 3) The Company needed to restructure its operations and the associated charges would cost the Company in excess of $20 million and would cause an earnings shortfall in coming quarters; 4) The Company's Q2 FY003 loss was grossly understated; 5) The Company was experiencing massive technical problems associated with its 40GB/per platter programs, well before January 2002 and beyond April 2002 when defendants claimed such problems were fixed; and 6) The Company was underfunded and could not complete the production of its 80GB programs.
On June 17, 2003, Read-Rite announced that it had filed for bankruptcy protection, seeking to liquidate its assets under Chapter 7. Plaintiff seeks to recover damages on behalf of all purchasers or acquirers of Read-Rite securities during the Class Period. Plaintiff is represented in this class action by the law firm of Bull & Lifshitz, LLP. Bull & Lifshitz, LLP has extensive experience in litigating investor class actions. For more information regarding Bull & Lifshitz, LLP, please visit our website at www.nyclasslaw.com.
For an information package please view www.nyclasslaw.com/infopackage.html. If you wish to discuss this action or have any questions concerning this notice of your rights or interests with respect to this matter, please contact Peter D. Bull, Esq. or Joshua M. Lifshitz, Esq., Bull & Lifshitz, LLP via telephone at (212) 213-6222, via fax at (212) 213-9405 or by email at counsel@nyclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca