NEW YORK, May 9, 2002 (PRIMEZONE) -- A shareholder sued Gerber Scientific, Inc. ("Gerber Scientific") (NYSE:GRB) today, accusing the company and several top officers of defrauding investors, Wechsler Harwood Halebian & Feffer LLP ("Wechsler Harwood") announced today.
The class-action complaint was filed in the U.S. District Court for the District of Connecticut. It seeks damages for violations of federal securities laws on behalf of all investors who bought Gerber Scientific common stock from May 27, 1999 through April 12, 2002 (the "Class Period").
The complaint charges defendants with violations of federal securities laws for issuing a series of false and misleading press releases concerning Gerber Scientific's financial condition and business prospects. The complaint alleges, that throughout the Class Period, Gerber Scientific was employing improper inventory and reserve accounting practices in violation of Generally Accepted Accounting Principals ("GAAP''). As a result, the price of the Company's common stock was artificially inflated throughout the Class Period, reaching as high as $24.50 per share. However, on April 15, 2002, Gerber Scientific announced that it expected to take a $12 million pre-tax charge in its fiscal fourth quarter, the period ending April 30, 2002. Moreover, the Company noted that in response to an investigation by the SEC into its inventory and reserve accounting practices, it was conducting an internal review of its financial reporting for the period January 1, 1998 through April 30, 2002. The Company further stated that its investigation is ongoing and once it has been completed, the Company will likely restate its financial results. In response, the stock price of Gerber Scientific plummeted to $6.99 per share, a decline of more than 71% from its Class Period high.
If you purchased Gerber Scientific securities during the Class Period, you may move the Court, no later than June 17, 2002, to serve as lead plaintiff. In order to serve as lead plaintiff, you must meet certain legal requirements.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whhf.com) has more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood Halebian & Feffer LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 Craig Lowther, Wechsler Harwood Shareholder Relations Department: clowther@whhf.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.