NEW YORK, Aug. 23, 2004 (PRIMEZONE) -- The law firm of Wechsler Harwood LLP announces that it has filed a lawsuit in the United States District Court for the District of Arizona, on behalf of persons who purchased or otherwise acquired publicly traded securities of White Electronic Designs Corporation ("White Electronic" or the "Company") (Nasdaq:WEDC) between January 23, 2003 and June 9, 2004, inclusive, (the "Class Period"). The lawsuit was filed against White Electronic, Hamid R. Shokrgozar, Edward A. White and William J. Rodes ("Defendants").
The complaint charges that Defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder. Specifically, the complaint alleges that the Company issued materially false and misleading statements regarding White Electronic's increasing revenues and long-term growth prospects, charging that Defendants knew or recklessly disregarded that White Electronic's increasing revenues and earnings could not be sustained and that orders for sales of the Company's microelectronic products for use in military weapons and procurement programs had been declining since at least the second quarter of fiscal 2003. Defendants failed to disclose that the declines marked a long-term change in priorities by the U.S. military following the build-up of orders prior to the armed conflict in Iraq.
On June 9, 2004, White Electronic issued a press release announcing its forecast of net sales of between $24-$25 million for the third quarter of fiscal 2004, the period ending July 3, 2004, far short of analysts' consensus estimates of approximately $30 million. On this news, the price of White Electronic shares fell 13.9% to $5.16 per share, on extremely heavy trading volume
Plaintiff is represented by the law firm of Wechsler Harwood LLP, which has extensive experience in prosecuting investor class actions involving financial fraud. Wechsler Harwood LLP has prosecuted securities, antitrust and consumer class actions for over 10 years. For more information about Wechsler Harwood LLP, please visit its website at www.whesq.com.
If you are a member of the class described above, you may, not later than September 21, 2004, move the Court to serve as lead plaintiff of the class, if you so choose. In order to serve as lead plaintiff, however, you must meet certain legal requirements. You may retain Wechsler Harwood LLP, or other counsel of your choice, to serve as your counsel in this action.
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
Wechsler Harwood Shareholder Relations Department: clowther@whesq.com extension 257.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca