NEW YORK, March 12, 2003 (PRIMEZONE) -- Abbey Gardy, LLP commenced a Class Action lawsuit in the United States District Court for the Northern District Court of California on behalf of a class (the "Class") of all persons or entities who purchased securities of Solectron Corporation. ("Solectron" or the "Company") (NYSE:SLR) between September 17, 2001 and September 26, 2002, inclusive (the "Class Period").
The Complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of material misrepresentations to the market during the Class Period, thereby artificially inflating the price of Solectron securities. Specifically, the complaint alleges that defendants issued a series of materially false and misleading statements regarding the Company's financial results and condition. 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 that should have been written down. As a result, Solectron's reported financial results were artificially inflated during the Class Period; and were not prepared in accordance with Generally Accepted Accounting Principles.
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, shares of Solectron common stock dropped to $2.16 from a Class Period high of $16.25.
Plaintiff seeks to recover damages on behalf of all those who purchased or otherwise acquired Solectron securities during the Class Period. If you purchased or otherwise acquired Solectron securities during the Class Period, and either lost money on the transaction or still hold the securities, you may wish to join in the action to serve as lead plaintiff. If you purchased Solectron securities during the Class Period, you may, no later than May 5, 2003 request that the Court appoint you as lead plaintiff.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the Court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiffs.'' Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff.
Abbey Gardy, LLP has been retained as one of the law firms to represent the Class. The attorneys at Abbey Gardy, LLP have extensive experience in securities class action cases, and have played lead roles in major cases resulting in the recovery of hundreds of millions of dollars to investors. If you would like to discuss this action or if you have any questions concerning this Notice or your rights as a potential class member or lead plaintiff, you may contact Nancy Kaboolian, Esq. of Abbey Gardy, LLP. at (800) 889-3701 or email NKaboolian@abbeygardy.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.