PHILADELPHIA, March 12, 2003 (PRIMEZONE) -- The law firm of Spector, Roseman & Kodroff, P.C. announces that a securities class action lawsuit was commenced in the United States District Court for the District of Delaware against defendants AstroPower, Inc. ("AstroPower" or the "Company") (Nasdaq:APWR), Allen M. Barnett (CEO and President), and Thomas J. Stiner (CFO), on behalf of purchasers of the common stock of AstroPower between February 22, 2002 and August 1, 2002, inclusive (the "Class Period").
The complaint alleges that defendants violated the federal securities laws by issuing a series of materially false and misleading statements to the market during the Class Period. Specifically, the complaint alleges that the Company claimed that it was well positioned to take advantage of the increasing demand for solar power products. Throughout the Class Period, the Company reported strong revenue and earnings growth and that, as a result of these statements and reports, the Company's per share stock price reached a Class Period high of $27 on March 28, 2002.
However, throughout the Class Period, which was not disclosed to the investing public, the Company was unable to effectively manage its expanding and increasingly complex operations and it was unable to allocate resources among its various manufacturing facilities to effectively meet regional demand or to tailor its production capacity to actual demand. To maintain the illusion that its operations were successful, the Company reported artificially inflated revenue and earnings by, among other things, recording revenue in advance of shipment, contrary to its stated principles of revenue recognition.
On August 1, 2002, after the close of trading, the Company announced its results for the second quarter ended June 30, 2002, reporting that revenues and net income had not grown but, on the contrary, second quarter income was $365,000, or $0.02 per diluted share compared to $1.7 million, or $0.07 per diluted share in the year-earlier second quarter and revenue of $20.4 million represented only a one percent increase over reported revenue for the prior quarter and was approximately $4.9 million below analysts' consensus estimate. AstroPower's share price plunged 48%, or $7.12, to $7.77on this announcement.
If you purchased AstroPower securities during the Class Period, you may, no later than May 6, 2003, move to be appointed as a Lead Plaintiff in this class action. A Lead Plaintiff is a representative, chosen by the Court, that acts on behalf of other class members in directing the litigation. The Private Securities Litigation Reform Act of 1995 directs Courts to assume that the class member(s) with the "largest financial interest" in the outcome of the case will best serve the class in this capacity. Courts have discretion in determining which class member(s) have the "largest financial interest," and have appointed Lead Plaintiffs with substantial losses in both absolute terms and as a percentage of their net worth.
If you have sustained substantial losses in AstroPower securities during the Class Period, please contact Spector, Roseman & Kodroff, P.C. at classaction@srk-law.com for a more thorough explanation of the Lead Plaintiff selection process. If you have relatively small losses, your ability to participate in any recovery will be protected by the Lead Plaintiff(s), and you need take no affirmative steps at this time.
If you wish to join this action, please visit http://www.srk-law.com/dbjoinaclassaction.asp. If you would like to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiff's counsel Robert M. Roseman toll-free at 888-844-5862 or via E-mail at classaction@srk-law.com. For more detailed information about the firm please visit its website at http://www.srk-law.com.
Spector, Roseman & Kodroff, P.C., located in Philadelphia, Pennsylvania and San Diego, California, concentrates its practice in complex litigation including actions dealing with securities laws, antitrust, contract and commercial claims. The firm is active in major litigation pending in federal and state courts throughout the United States. The firm's reputation for excellence has been recognized on repeated occasions by courts which have appointed the firm as lead counsel in numerous major class actions involving violations of the federal securities laws and the federal antitrust laws, and consumer fraud. As a result of the efforts of the firm, and its members, hundreds of millions of dollars have been recovered on behalf of thousands of defrauded shareholders and companies.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca.