BALA CYNWYD, Pa., March 7, 2003 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP: Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Northern District of California on behalf of all purchasers of the common stock of Solectron Corporation (NYSE:SLR) ("Solectron" or the "Company") publicly traded securities during the period between September 17, 2001 and September 26, 2002, inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges Solectron Corporation and certain of its officers and directors with issuing false and misleading statements concerning its business and financial condition. Specifically, the complaint alleges that defendants issued numerous statements reporting artificially inflated financial results. The Complaint alleges that these statements were materially false and misleading because they failed to disclose and/or misrepresented the following adverse facts, among others: (a) that the Company was carrying tens of millions of dollars of obsolete and unsaleable inventory in its Technology Solutions division which was required to be written down. As a result of the foregoing, Solectron's reported financial results were artificially inflated at all times during the Class Period; (b) as a result of the Company's failure to writedown its inventory in a timely manner, the financial statements published by the Company during the Class Period were not prepared in accordance with Generally Accepted Accounting Principles and were materially false and misleading; and (c) that it was materially false and misleading to characterize the Company's earnings during the Class Period, as "in line" with Company guidance, when had the Company properly accounted for its inventory it would have drastically missed its guidance.
On September 26, 2002, after the market closed, Solectron issued a press release announcing its financial results for the fourth quarter of 2002 and fiscal year 2002. The Company also reported that it was booking a pre-tax charge of $97 million to reserve for inventory revaluation and write-off. Solectron attributed the bulk of the charge to "inventory risk assumed by Solectron's product-oriented Technology Solutions business unit ..." Following this announcement, and other revelations, shares of Solectron common stock fell from their previous close.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com/cgi/signup.cgi.
If you are a member of the class described above, you may, not later than May 5, 2003, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements.
More information on this and other class actions can be found on theClass Action Newsline at www.primezone.com/ca