HARTFORD, Conn., Oct. 31, 2007 (PRIME NEWSWIRE) -- The law firm of Schatz Nobel Izard P.C., which has significant experience representing investors in prosecuting claims of securities fraud, announces that a lawsuit seeking class action status has been filed in the United States District Court for the Northern District of California on behalf of all persons who purchased the common stock of FormFactor, Inc. ("FormFactor" or the "Company") (Nasdaq:FORM) between April 26, 2006 and October 24, 2007, inclusive (the "Class Period").
The Complaint charges that FormFactor and certain of its officers and directors violated federal securities laws by issuing materially false and misleading statements regarding FormFactor's business and financial results. Specifically, during the Class Period, the defendants concealed the following facts: (i) the Company failed to properly account for its obsolete inventory; and (ii) the Company was experiencing production constraints related to its new Harmony product which would significantly increase its costs and expenses in order to accelerate its production capabilities. Furthermore, the production constraints would significantly raise the risk that customers with older generation products would seek alternative sources, such as the Company's competitors, or seek to renegotiate their contracts with FormFactor placing serious pressure on the Company's future revenue.
On October 24, 2007, after the market closed, the Company announced that adjustments to inventory valuations may be required with respect to periods prior to the third quarter of 2007. On this news, FormFactor's stock declined $7.70 per share to close at $35.54 per share, a one-day decline of nearly 20%. During the Class Period, FormFactor traded as high as $49.45 per share on August 30, 2006.
If you are a member of the class, you may, no later than December 31, 2007, request that the Court appoint you as lead plaintiff of the class. A lead plaintiff is a class member that acts on behalf of other class members in directing the litigation. Although your ability to share in any recovery is not affected by the decision whether or not to seek appointment as a lead plaintiff, lead plaintiffs make important decisions which could affect the overall recovery for class members, including decisions concerning settlement. The securities laws require the Court to consider the class member(s) with the largest financial interest as presumptively the most adequate lead plaintiff(s).
While Schatz Nobel Izard P.C. has not filed a lawsuit against the defendants, to view a copy of the Complaint initiating the class action or for more information about the case, class action cases in general, and your rights, please contact Schatz Nobel Izard P.C. toll-free at (800) 797-5499, or by e-mail at firm@snilaw.com, or visit our website: www.snilaw.com.