Cauley & Geller, LLP Announces Class Action Lawsuit Against Sonic Innovations Inc. Seeking Damages On Behalf of Shareholders.Business Editors/Legal Writers SAN DIEGO--(BUSINESS WIRE)--Oct. 30, 2000 The Law Firm of Cauley & Geller, LLP LLP - Lower Layer Protocol announced today that it has filed a class action in the United States District Court for the District of Utah The United States District Court for the District of Utah is the Federal district court whose jurisdiction is the state of Utah. The court is based in Salt Lake City. The United States Attorney's Office for the District of Utah on behalf of all individuals and institutional investors that purchased the securities of Sonic Innovations, Inc. ("Sonic" or the "Company") (Nasdaq:SNCI SNCI Societe Nationale de Credit et d'Investissement (Luxembourg) SNCI Site of Nature Conservation Importance (UK) ) between May 2, 2000 and October 24, 2000,inclusive (the "Class Period"), including those who purchased shares pursuant to the May 2, 2000 Initial Public Offering ("IPO (Initial Public Offering) The first time a company offers shares of stock to the public. While not a computer term per se, many founders, employees and insiders of computer companies have found this acronym more exciting than any tech term they ever heard. "). The complaint charges that the Company and certain of its officers and directors violated the federal securities laws by providing materially false and misleading information about the Company's financial condition and future growth potential. Sonic Innovations designs, manufacturers and markets digital hearing aids A hearing aid that processes sound in digital form. Digital techniques have been used with hearing aids starting in the early 1990s when digitally programmable devices were the first to provide the equivalent of an audio equalizer in the ear, enabling only required frequencies to be and hearing aid components. The complaint alleges that from May 2, 2000 through October 24, 2000, Sonic Innovations saw its stock price soar from its IPO price of $14 per share to as high as $25 per share as Sonic Innovations misrepresented the true status of its relationship with Starkey Laboratories Starkey Laboratories is a large developer, manufacturer, and distributer of hearing aids headquartered in Eden Prairie, Minnesota. The privately held company was founded in 1967 and had a 25% U.S. hearing aid market share and a 14% worldwide hearing aid market share in 2006. , Inc. ("Starkey"), concealing the fact that Starkey, one of Sonic Innovations's largest customers: (a) had millions of dollars worth of Sonic Innovations's product in its inventory that it could not sell; (b) was refusing to pay for product previously shipped to it by Sonic Innovations; and (c) considered the April 19, 1999 OEM (Original Equipment Manufacturer) The rebranding of equipment and selling it. The term initially referred to the company that made the products (the "original" manufacturer), but eventually became widely used to refer to the organization that buys the products and Agreement to be void as Sonic Innovations had materially breached the OEM Agreement due to, among other things, materially breaching the quality control provisions. The complaint further alleges that the defendants knowingly concealed the fact that they were informed prior to the IPO that the IC-1 chips the company was shipping to Starkey were defective which would jeopardize its contract with Starkey but would allow defendants to complete the IPO and artificially inflate Sonic Innovation's Q2 projections, its Q2 results and its Q3 projections/results. As a result of defendants' alleged false statements/omissions, Sonic Innovations's stock traded at inflated levels during the Class Period, increasing to as high as $25 on June 20, 2000 and tumbled to $5-1/2 on October 25, 2000 as defendants began to partially reveal the true status of the Company's relationship with Starkey. Cauley & Geller, LLP has substantial experience representing investors in securities fraud class action lawsuits class action lawsuit A lawsuit in which one party or a limited number of parties sue on behalf of a larger group to which the parties belong. For example, investors may bring a class action lawsuit against a brokerage firm that has actively promoted a tax such as this. The firm has offices in Florida, Arkansas and California, but represents shareholders from throughout the nation. If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you must meet certain requirements and take appropriate action by December 26, 2000. You are encouraged to call or e-mail the Firm or visit the Firm's website at www.classlawyer.com. Cauley & Geller, LLP Client Relations Department 225 Broadway, Suite 1900 San Diego San Diego (săn dēā`gō), city (1990 pop. 1,110,549), seat of San Diego co., S Calif., on San Diego Bay; inc. 1850. San Diego includes the unincorporated communities of La Jolla and Spring Valley. Coronado is across the bay. , CA 92101 Toll Free: 1-888-551-9944 E-mail: info@classlawyer.com |
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