NEW YORK, August 19, 2003 (PRIMEZONE) -- The law firm of Wechsler Harwood LLP filed a class action suit against Alan S. Lowe and Andrew C. Holcomb, respectively the Chief Executive Officer and Chief Financial Officer of Read-Rite Corporation ("Read-Rite" or the "Company") (NYSE:RDRTQ) in the United States District Court for the Northern California on behalf of all persons or entities who purchased Read-Rite stock between October 30, 2001 and June 17, 2003 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 the Securities and Exchange Commission by issuing a series of material misrepresentations about the financial condition of Read-Rite in order to materially inflate the stock price, obtain a stream of capital to keep the Company operational, and maintain the lucrative salaries received by defendants. The complaint alleges that the defendants released financial statements that were in violation of Generally Accepted Accounting Principles("GAAP"). On June 17, 2003, Read-Rite stunned the market when it disclosed that it would seek bankruptcy protection under Chapter 7.
If you purchased Read-Rite securities during the period from October 30, 2001 through June 17, 2003, inclusive, you may, no later than September 5, 2003, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party 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 Read-Rite securities during the Class Period, please contact Wechsler Harwood LLP at www.whesq.com or Glancy & Binkow LLP at www.glancylaw.com for a more thorough explanation of the Lead Plaintiff selection process.
Wechsler Harwood has taken a leading role in many important actions on behalf of defrauded shareholders. The Wechsler Harwood website (www.whesq.com) has more information about the firm. If you wish to discuss this action with us, or have any questions concerning this notice or your rights and interests with regard to the case, please contact the following:
Wechsler Harwood LLP 488 Madison Avenue, 8th Floor New York, New York 10022 Toll Free Telephone: (877) 935-7400 x-283 Craig Lowther, Wechsler Harwood Shareholder Relations Department: clowther@whesq.com or Glancy & Binkow LLP 1801 Avenue of the Stars Los Angeles, CA 90006 1-310-201-9150
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca