BALA CYNWYD, Pa., March 11, 2003 (PRIMEZONE) -- Law offices of Brodsky & Smith, LLC today announces that a securities class action lawsuit has been filed on behalf of shareholders who purchased the publicly traded securities of AstroPower, Inc. ("AstroPower" or the "Company") (Nasdaq:APWR) between February 22, 2002 and August 1, 2002, inclusive (the "Class Period").
The case is pending in the United States District Court for the District of Delaware against the company and certain of its officers and directors. AstroPower develops, manufactures, markets and sells a range of solar electric power generation products. The complaint alleges that by issuing a series of materially false and misleading statements to the market regarding AstroPower's business and financial condition, between February 22, 2002 and August 1, 2002, defendants AstroPower, Allen M. Barnett (CEO and President) and Thomas J. Stiner (CFO), violated the Securities Exchange Act of 1934.
The complaint alleges that throughout the Class Period, AstroPower claimed that it was well positioned to take advantage of the increasing demand for solar power products and that, throughout the Class Period, the Company reported strong revenue and earnings growth. As a result of these statements and reports, which were disseminated to the investing public, on March 28, 2002, the Company's per share stock price reached a Class Period high of $27.00. The complaint further alleges that throughout the Class Period, the Company was unable to effectively manage its expanding and increasingly complex operations. Consequently, during the time that AstroPower was stating that it was well positioned to take advantage of the increased demand for solar products, it was in fact losing ground to more effective competitors. Additionally, throughout the Class Period, AstroPower reported artificially inflated revenue and earnings by, inter alia, recording revenue in advance of shipment, contrary to its stated principles of revenue recognition.
On August 1, 2002, after the close of trading, AstroPower announced its results for the second quarter ended June 30, 2002. Analysts were stunned. Reported revenue and net income had not grown and revenue of $20.4 million was approximately $4.9 million below analysts' consensus estimate. On this news, AstroPower's share price plunged 48%, to $7.77, its lowest price in almost three years.
No class has yet been certified in the above action. Until a class is certified, you are not represented by counsel unless you retain one. If you purchased the stock listed above during the Class Period, you have certain rights. To be a member of the class you need not take any action at this time, and you may retain counsel of your choice.
If you were a purchaser of this stock between February 22, 2002 and August 1, 2002 and want to discuss your legal rights, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. You may contact Marc L. Ackerman, Esquire or Evan J. Smith, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 602, Bala Cynwyd, PA 19004, by e-mail at clients@brodsky-smith.com, or by calling toll free 877-LEGAL-90.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca