CHICAGO, April 21, 2003 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that a class action lawsuit is pending in the United States District Court for the District of Oregon on behalf of purchasers of the securities of Electro Scientific Industries, Inc. (Nasdaq:ESIO) ("ESIO" or the "Company") between September 17, 2002 and March 20, 2003, inclusive ("Class Period").
It has been alleged that ESIO, David Bolender, James T. Dooley and Joseph Reinhart violated the federal securities laws by issuing a series of materially false and misleading statements to the market, which had the effect of artificially inflating the market price of ESIO's securities.
The Complaint alleges that these statements were materially false and misleading because they failed to disclose and misrepresented the following adverse facts, among others: (a) that ESIO had reported artificially inflated financial results for the quarters ended August 31, 2002 and November 30, 2002; (b) that ESIO was improperly accounting for sales, thereby overstating its sales figures and, in addition thereto, was understating the cost of sales, in violation of Generally Accepted Accounting Principles and its own revenue recognition policies; and (c) that ESIO lacked adequate internal controls and was therefore unable to ascertain the true financial condition of the Company. As a result of the foregoing, the ESIO financial statements published during the Class Period did not contain "all adjustments ... necessary for a fair presentation" of its financial position.
On March 20, 2003, after the close of the market, ESIO issued a press release, announcing that it would be restating its financial statements for the first and second fiscal quarters. In response to this announcement, the price of Electro Scientific common stock fell from $15.17 per share to $12.51 per share, a one-day decline of over 17%. Much Shelist is currently investigating these claims. If you wish to discuss your rights and interests, or if you have information relevant to the lawsuit, you may contact Carol V. Gilden or Michael E. Moskovitz at Much Shelist Freed Denenberg Ament & Rubenstein, P.C., by calling a toll-free number 1-800-470-6824, or by sending an e-mail to investorhelp@muchshelist.com. Your e-mail should refer to ESIO. If you purchased ESIO securities during the Class Period and if you meet certain other legal requirements, you may file a motion in the court where the lawsuit has been filed to serve as a lead plaintiff. You must file your motion no later than May 27, 2003.
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 plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States. The firm has successfully prosecuted cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion.