NEW YORK, June 6, 2005 (PRIMEZONE) -- Murray, Frank & Sailer LLP has filed a class action lawsuit in the United States District Court for the District of New Hampshire on behalf of all securities purchasers of StockerYale, Inc. ("StockerYale" or "the Company") (Nasdaq:STKR) between April 19, 2004 through May 23, 2005, inclusive (the "Class Period").
The complaint alleges that during the Class Period StockerYale and certain of the Company's executive officers issued materially false and misleading financial statements to the investing public regarding its financial prospects in violation of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b 5 promulgated thereunder.
StockerYale designs and manufactures structured light lasers, light emitting diodes (LEDs), fiber optic and fluorescent illumination technologies. The complaint alleges that defendants misrepresented the nature of contracts the Company entered into with BAE Systems ("BAE"), Inc. On April 19, 2004, the Company issued a press release leading the market to believe that it received an order from BAE to supply lasers to a program developing an airborne military missile defense system and that the Company was also developing a laser as part of a Department of Homeland Security ("DHS") program that was determining the feasibility of a missile countermeasure system for commercial planes. In response to this announcement, the price of the Company's securities dramatically jumped, and by April 20, 2004, had hit a high of $7.75, an increase of 474% from the closing price of the stock prior to the notices publication. On April 21, 2004, the Company issued a follow-up press release that had the effect of reiterating the April 19, 2004 press release. Amidst this dramatic increase in the price of the stock, Mark Blodgett ("Blodgett"), the Chairman, Chief Executive Officer and President of the Company, sold 250,000 shares of his privately held stock at $6.56 per share. In addition, defendant Lawrence Blodgett, a director of the Company and father to Mark Blodgett, sold over $350,000 worth of StockerYale shares.
The complaint alleges that the statements made by the Company concerning the BAE orders were materially false and misleading when made because defendants misrepresented that the Company was developing lasers for the development of a missile countermeasure system for commercial planes which was part of a Department of Homeland Security contract issued to BAE. In fact, the lasers contracted were not intended for use on commercial airplanes and the contract awarded to StockerYale was not part of a DHS program.
On November 9, 2004, the Company received a "Wells Notice" from the Securities and Exchange Commission ("SEC") indicating that the SEC intended to recommend that a civil action be brought against StockerYale and Mark Blodgett ("Blodgett") in connection with the April 19, 2004 and April 21, 2004 press releases. On May 24, 2005, the SEC announced that it had commenced a civil action by filing a complaint against the Mark Blodgett and the Company alleging that the April 19, 2004 and April 21, 2004 press releases were false and misleading in that they created the false impression that StockerYale was supplying lasers to BAE in support of a DHS program, when in fact the orders were not related to any DHS program and that the Company was not involved in a project that was "developing a customized laser for a missile countermeasure system for commercial planes under a recent contract received from a unit of BAE." In connection with the commencement of the civil action, Mark Blodgett and the Company consented to an entry of an order enjoining them from further violating securities regulations and ordering Blodgett to pay disgorgement plus interest in the amount of $788,118.92 and a civil penalty in the amount of $120,000.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than thirty years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States.
If you purchased or otherwise acquired StockerYale securities on any world exchange between April 19, 2004 through May 23, 2005, and sustained damages, you may, no later than July 24, 2005, move the Court to serve as lead plaintiff. Shareholders outside the United States may also join the action, regardless of which exchange was used to purchase the securities. To serve as lead plaintiff, however, you must meet certain legal requirements. You can join this class action as lead plaintiff online at http://www.murrayfrank.com/CM/NewCases/NewCases.asp. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff's counsel Eric J. Belfi or Christopher S. Hinton of Murray, Frank & Sailer LLP.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca