BALA CYNWYD, Pa., May 28, 2004 (PRIMEZONE) -- The following statement was issued today by the law firm of Schiffrin & Barroway, LLP:
Notice is hereby given that a class action lawsuit was filed in the United States District Court for the Northern District of Califorina on behalf of all purchasers of the common stock of Lexar Media Inc., (Nasdaq:LEXR) ("Lexar" or the "Company" ) from July 17, 2003 through April 16, 2004 inclusive (the "Class Period").
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Schiffrin & Barroway, LLP (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) toll free at 1-888-299-7706 or 1-610-667-7706, or via e-mail at info@sbclasslaw.com.
The complaint charges that Lexar, Eric Stang, and Brian McGee 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 between July 17, 2003 and April 16, 2004. More specifically, the Complaint alleges that the Company failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company underestimated the impact and the timing of competitive pricing moves in the flash memory market; (2) that the Company's preferential supply relationship with Samsung failed to insulate Lexar from fluctuations in pricing and availability of flash memory, which negatively affected the Company's product margins; and (3) the Company lacked sufficient royalty income to offset product gross margins pressure.
On April 15, 2004, Lexar reported financial results for the first quarter ended March 31, 2004. After several quarters of relatively stable average selling prices, second quarter price declines were sizeable. These declines were occurring sooner than Lexar had previously anticipated. News of this shocked the market. Shares of Lexar fell $5.03 per share or 32.56 percent on April 16, 2004, to close at $10.42 per share.
Plaintiff seeks to recover damages on behalf of class members and is represented by the law firm of Schiffrin & Barroway, which prosecutes class actions in both state and federal courts throughout the country. Schiffrin & Barroway is a driving force behind corporate governance reform, and has recovered in excess of a billion dollars on behalf of institutional and high net worth individual investors. For more information about Schiffrin & Barroway, or to sign up to participate in this action online, please visit http://www.sbclasslaw.com.
If you are a member of the class described above, you may, not later than July 20, 2004 move the Court to serve as lead plaintiff of the class, if you so choose. 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. You may retain Schiffrin & Barroway, or other counsel of your choice, to serve as your counsel in this action.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca