BALA CYNWYD, Pa., March 12, 2002 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
A securities class action lawsuit pending in the U.S. District Court for the District of Colorado (02-D-0263) claims that Spectralink Corporation ("Spectralink" or the "Company") (Nasdaq:SLNK) misled shareholders about its business and financial condition.
Plaintiff seeks damages for violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 (and/or the Securities Act of 1933) on behalf of all investors who bought Spectralink Corporation securities between July 19, 2001 and January 11, 2002 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Spectralink Corporation and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our Website at www.sbclasslaw.com.
The complaint alleges that the Colorado-based Spectralink Corporation issued statements which represented that the Company was experiencing continued growth and increasing its market share and would continue to do so in the future. Unbeknownst to investors, however, the Company was suffering from a host of undisclosed adverse factors which were negatively impacting its business and which would cause it to report declining financial results, materially less than the market expectations defendants had caused and cultivated. Specifically, defendants misrepresented or failed to disclose that: (a) the Company was experiencing declining sales as its business began to be affected by general market forces. Throughout the Class Period, defendants repeatedly emphasized that the Company was not being affected by the slowdown in the U.S. economy, when, in fact, that was not true; (b) the Company was becoming increasingly reliant on end-of-the-quarter sales to meet its sales forecasts. This sales pattern necessarily subjected the Company to the increased risk that it would not meet its sales expectations should it not successfully complete certain anticipated sales; and (c)) certain of Spectralink's customers were experiencing financial difficulty such that it was highly unlikely that they would be able to complete anticipated sales, thereby causing Spectralink to suffer a decline in its revenues. On January 14, 2002, before the open of the Nasdaq stock market, Spectralink issued a press release announcing preliminary financial results for its fourth quarter of 2001, and disclosed, for the first time, that its revenue and earnings would in fact be affected by the slowdown in the overall economy. In response to this announcement, the price of Spectralink common stock dropped precipitously, falling from $16.02 per share to $10.16 per share, a decline of more than 36%. While Spectralink was being adversely affected by the aforementioned factors, but prior to any disclosure to the market, the Individual Defendants and other Spectralink senior executives sold more than $13.7 million worth of their personally-held Spectralink common stock to the unsuspecting public.
If you purchased Spectralink Corporation securities between July 19, 2001 and January 11, 2002, you may be a member of the class and have until April 8, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our Website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca